Management MCQs

Eurobonds are admired because

by
A. they are less risky than traditional bonds
B. European companies are considered very stable
C. of absence of government regulation
D. they are always denominated in euro
✅ The correct answer is option C.
Eurobonds are admired because of absence of government regulation. A Eurobond is a debt instrument that’s denominated in a currency other than the home currency of the country or market in which it is issued. Eurobonds are important because they help organizations raise capital while having the flexibility to issue them in another currency.

International bankers

by
A. letter of confirmation
B. letter of transfer
C. letter of credits
D. letter of buying
✅ The correct answer is option C.
International bankers letter of credits. A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods.

If price of municipal bonds suddenly changes because of an unexpected interest rate change then investment bank

by
A. faces a high profit
B. faces a loss
C. face a inflation
D. face an index risk
✅ The correct answer is option B.
If price of municipal bonds suddenly changes because of an unexpected interest rate change then investment bank faces a loss. Municipal bonds are loans investors make to local governments. They are issued by cities, states, counties, or other local governments. For that reason, the interest they pay on the bonds is tax-free.

The technique that have been used to evaluate an employee in comparison with other employees

by
A. Ranking
B. Forced choice
C. Essay evaluation
D. Critical incident technique
✅ The correct answer is option A.
The Ranking technique have been used to evaluate an employee in comparison with other employees. Ranking method is one of the simplest performance evaluation methods. In this method, employees are ranked from best to worst in a group. The simplicity of this method is overshadowed by the negative impact of assigning a ‘worst’ and a ‘best’ rating to an employee.

____ information system that express a fundamental concept and activities of information systems.

by
A. Model
B. Style
C. Standard
D. Logic
✅ The correct answer is option A.
Model information system that express a fundamental concept and activities of information systems. A model is an abstraction of something it represents (some phenomenon), called an entity.

Type of markets in which derivative securities are traded is classified as

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A. derivative security markets
B. trading markets
C. classified markets
D. non-trading markets
✅ The correct answer is option A.
Type of markets in which derivative securities are traded is classified as derivative security markets. Derivative securities (also called derivatives) are financial contracts whose values are derived from the values of underlying financial assets (such as securities).

Position which occurs because of selling floor and buying cap is classified as

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A. floating collar
B. fixed collar
C. currency collar
D. collar
✅ The correct answer is option D.
Position which occurs because of selling floor and buying cap is classified as collar. A collar, commonly known as a hedge wrapper, is an options strategy implemented to protect against large losses, but it also limits large gains.

Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as

by
A. selling window
B. buying window
C. premium window
D. discount window
✅ The correct answer is option D.
Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as discount window. The discount window is a central bank lending facility meant to help commercial banks manage short-term liquidity needs.