Management MCQs

Security systems based on physical or behavioral traits are called ________________.

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A. Smart cards
B. Tokens
C. Firewalls
D. Biometrics
✅ The correct answer is option D.
Security systems based on physical or behavioral traits are called Biometrics. Biometric technologies are automated methods for verifying or recognising the identity of a living person based on physical or behavioural characteristics. By using biometric technologies in all aspects of ITS security we can enhance security, but safety and protection as well.

Acquisitions often fail to deliver the successes that were predicted prior to acquisition. What is the main reason for this failure?

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A. Premium price
B. Poor strategic leadership
C. Goodwill
D. Synergy
✅ The correct answer is option B.
Acquisitions often fail to deliver the successes that were predicted prior to acquisition. Poor strategic leadership is the main reason for this failure. Strategic leaders act in ways that manage the tension between success in daily tasks and success in the long term. They facilitate other’s strategic actions, too, by providing a balance of direction and autonomy, of learning from actions and rewarding appropriate risk-taking.

If equilibrium interest rate increases with respect to increase in interest rate, then movement along supply of funds curve is

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A. shift left
B. shift right
C. upside movement
D. downside movement
✅ The correct answer is option C.
If equilibrium interest rate increases with respect to increase in interest rate, then movement along supply of funds curve is upside movement. 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.

The oldest type of organization__________.

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A. functional organization
B. line organization
C. matrix organization
D. committee organization
✅ The correct answer is option B.
The oldest type of organization is line organization. Line organization structure is the oldest and simplest form of organization. In these organizations, a supervisor exercises direct supervision over a subordinate. Also, authority flows from the top-most person in the organization to the person in the lowest rung.

Type of option that can be exercised before date of expiration as well as on expiry date is classified as

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A. Australian option
B. American option
C. European option
D. Canadian option
✅ The correct answer is option B.
Type of option that can be exercised before date of expiration as well as on expiry date is classified as American option. An American option is a version of an options contract that allows holders to exercise the option rights at any time before and including the day of expiration. Another version or style of option execution is the European option that allows execution only on the day of expiration.

Securities with lower default risk and having highest credit quality are assigned rating of

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A. double B
B. triple B
C. triple A
D. double A
✅ The correct answer is option C.
Securities with lower default risk and having highest credit quality are assigned rating of triple A. AAA is the highest possible rating that may be assigned to an issuer’s bonds by any of the major credit rating agencies. AAA-rated bonds boast a high degree of creditworthiness, because their issuers are generally easily able meet their financial commitments and they consequently run lower risks of defaulting.

In Eurodollar market, decrease in demand of Euro dollars results in

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A. increase in KIBOR
B. decrease in KIBOR
C. decrease in federal funds rate
D. increase in federal funds rate
✅ The correct answer is option C.
In Eurodollar market, decrease in demand of Euro dollars results in decrease in federal funds rate. The federal funds rate refers to the interest rate that banks charge other banks for lending them money from their reserve balances on an overnight basis.