Management MCQs

According to demand for funds curve, demand curve shifts to right if there is increase in

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A. equilibrium demand
B. equilibrium interest rate
C. equilibrium supply
D. equilibrium savings
✅ The correct answer is option B.
According to demand for funds curve, demand curve shifts to right if there is increase in equilibrium interest rate. The equilibrium interest rate is the rate at which the quantity of money demanded is equal to the quantity of money supplied. The Federal Reserve can alter the equilibrium interest rate by adjusting the supply of money. The demand for money and supply of money can be graphed to determine the equilibrium interest rate.

Risk associated with Eurobonds and usually bears by underwriters is related to

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A. company annual sale
B. future sale of bonds
C. past sale of bonds
D. initial sale of bond
✅ The correct answer is option D.
Risk associated with Eurobonds and usually bears by underwriters is related to initial sale of bond. Most bonds can be sold by the initial bondholder to other investors after they have been issued. In other words, a bond investor does not have to hold a bond all the way through to its maturity date.

A company specializing in producing mass market cars acquires a company which specializes in financial services. The new company can now offer financial services to its car purchasers. What form of diversification is this?

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A. Resource-based
B. Unrelated
C. Routine-based
D. Replication-based
✅ The correct answer is option B.
A company specializing in producing mass market cars acquires a company which specializes in financial services. The new company can now offer financial services to its car purchasers. Unrelated form of diversification is this. Unrelated Diversification is a form of diversification when the business adds new or unrelated product lines and penetrates new markets.

Bondholders usually accept interest payments each

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A. 1 year
B. six months
C. 2 months
D. 2 years
✅ The correct answer is option B.
Bondholders usually accept interest payments each six months. A bondholder is an investor or owner of debt securities that are typically issued by corporations and governments. Bondholders are essentially lending money to the bond issuers. Bondholders receive their principal back when the bonds mature and periodic interest payments for most bonds.

An instruction in a computer program that triggers a malicious act is called as ____________.

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A. Logic Bombs
B. Packet Sniffer
C. Hacking
D. Computer Crime
✅ The correct answer is option A.
An instruction in a computer program that triggers a malicious act is called as Logic Bombs. A logic bomb, sometimes referred to as slag code, is a string of malicious code used to cause harm to a network when the programmed conditions are met.

Principal investors of US treasury bills which are issued by US treasury does not includes

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A. mutual funds
B. extensive funds
C. corporations
D. brokers and dealers
✅ The correct answer is option A.
Principal investors of US treasury bills which are issued by US treasury does not includes mutual funds. United States Treasury securities are government debt instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation.

Transactions in market of treasury bills is mostly transacted over telephone and hence classified as

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A. decentralized
B. centralized
C. federalize
D. commercialize
✅ The correct answer is option A.
Transactions in market of treasury bills is mostly transacted over telephone and hence classified as decentralized. It is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.