Management MCQs

Political constancy is chief aspect concerning

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A. exchange risk
B. systematic risk
C. non-systematic risk
D. country risk
✅ The correct answer is option D.
Political constancy is chief aspect concerning country risk. Country risk is the risk that a foreign government will default on its bonds or other financial commitments. Country risk also refers to the broader notion of the degree to which political and economic unrest affect the securities of issuers doing business in a particular country.

If a non-redundant constraint is removed from an LP problem then.

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A. Feasible region will become larger
B. Feasible region will become smaller
C. Solution will become infeasible
D. None of the above
✅ The correct answer is option A.
If a non-redundant constraint is removed from an LP problem then feasible region will become larger. A redundant constraint is a constraint that can be omitted from the system without changing the set of feasible solutions S. An implicit equality constraint is an inequality constraint that can be replaced by an equality constraint without changing S.

What is concerned with the prediction of replacement costs and determination of the most economic replacement policy ?

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A. Search Theory
B. Theory of replacement
C. Probabilistic Programming
D. None of the above
✅ The correct answer is option B.
Theory of replacement is concerned with the prediction of replacement costs and determination of the most economic replacement policy. The Replacement Theory in Operations Research is used in the decision making process of replacing a used equipment with a substitute; mostly a new equipment of better usage. The replacement might be necessary due to the deteriorating property or failure or breakdown of particular equipment.

A corporate bond is a corporation’s write undertaking that it will refund a specific amount of money plus

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A. premium
B. interest
C. nothing
D. security
✅ The correct answer is option B.
A corporate bond is a corporation’s write undertaking that it will refund a specific amount of money plus interest. A corporate bond is a debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company’s physical assets may be used as collateral for bonds.

International Monetary Fund formal existence came into being in

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A. 12-05-44
B. 27-07-44
C. 27-12-45
D. 27-09-45
✅ The correct answer is option C.
International Monetary Fund formal existence came into being in 27-12-45. The IMF formally came into existence on 27 December 1945, when the first 29 countries ratified its Articles of Agreement. By the end of 1946 the IMF had grown to 39 members. On 1 March 1947, the IMF began its financial operations, and on 8 May France became the first country to borrow from it.

Type of institutions that write securities, engage in brokerage and security trading are considered as

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A. trading institutions
B. activity institutions
C. investment banks
D. mortgage banks
✅ The correct answer is option C.
Type of institutions that write securities, engage in brokerage and security trading are considered as investment banks. An investment bank (IB) is a financial intermediary that performs a variety of services. Most Investment banks specialize in large and complex financial transactions, such as underwriting, acting as an intermediary between a securities issuer and the investing public, facilitating mergers and other corporate reorganizations and acting as a broker or financial adviser for institutional clients.

What does an report presents

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A. Always state the research question or hypothesis and are written in first person to show that the author takes responsibility for the findings
B. Usually a review of the literature, the findings, a discussion and recommendations
C. Always present recommendations as well as an outline of the methods used and the findings
D. At least a review of the literature, the methods used, the findings and a discussion They have some common elements but may vary in overall organisational structure
✅ The correct answer is option D.
A report presents least a review of the literature, the methods used, the findings and a discussion they have some common elements but may vary in overall organisational structure.

Special provisions that can have adverse or beneficial effects and are reflected in interest rates does not include

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A. tax-ability
B. covert ability
C. call ability
D. inflation premium
✅ The correct answer is option D.
Special provisions that can have adverse or beneficial effects and are reflected in interest rates does not include inflation premium. An inflation premium is the part of prevailing interest rates that results from lenders compensating for expected inflation by pushing nominal interest rates to higher levels.