A. $60
B. $57.20
C. $55
D. $63
✅ The correct answer is option B.
Initial value of price weighted index = ($50 + $60 + $55 + $58 + $63)
= $57.20.
Initial value of price weighted index = ($50 + $60 + $55 + $58 + $63)
= $57.20.
Management MCQs
Main trading markets of Eurobonds are
A. London and Luxembourg
B. Australian markets
C. Swiss banks counters
D. Asian banks counters
✅ The correct answer is option A.
Main trading markets of Eurobonds are London and Luxembourg. Most Eurobonds are traded over-the-counter but some are listed on exchanges located in London, Luxembourg, and Dublin. However, there is not much of a secondary market for Eurobonds; most secondary trading occurs with dealers rather than other investors.
Main trading markets of Eurobonds are London and Luxembourg. Most Eurobonds are traded over-the-counter but some are listed on exchanges located in London, Luxembourg, and Dublin. However, there is not much of a secondary market for Eurobonds; most secondary trading occurs with dealers rather than other investors.
Rule which states that similar set of goods and services produced in various countries should have equal price is classified as
A. law of similar mortgage rate
B. law of one type manufacturing
C. law of similar labour rules
D. law of one price
✅ The correct answer is option D.
Rule which states that similar set of goods and services produced in various countries should have equal price is classified as law of one price. The law of one price is an economic concept that states that the price of an identical asset or commodity will have the same price globally, regardless of location, when certain factors are considered.
Rule which states that similar set of goods and services produced in various countries should have equal price is classified as law of one price. The law of one price is an economic concept that states that the price of an identical asset or commodity will have the same price globally, regardless of location, when certain factors are considered.
Which of the following would you not expect to see in a vision statement?
A. Descriptions of desirable future situations
B. Motivational terminology
C. Focus on the values to which the organization is committed
D. What the organization seeks to do to reach desirable future states
✅ The correct answer is option D.
What the organization seeks to do to reach desirable future states is not expected to see in a vision statement.
What the organization seeks to do to reach desirable future states is not expected to see in a vision statement.
Agency cost can be decreased by
A. Decentralized Structure
B. Centralized and Decentralized Structure
C. Centralized Structure
D. None of it
✅ The correct answer is option C.
Agency cost can be decreased by Centralized Structure. Centralized organization can be defined as a hierarchy decision-making structure where all decisions and processes are handled strictly at the top or the executive level.
Agency cost can be decreased by Centralized Structure. Centralized organization can be defined as a hierarchy decision-making structure where all decisions and processes are handled strictly at the top or the executive level.
Type of risk in which payments are interrupted by intervention of foreign governments is considered as
A. channel risk
B. globalization risk
C. state risk
D. country risk
✅ The correct answer is option D.
Type of risk in which payments are interrupted by intervention of foreign governments is considered as 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.
Type of risk in which payments are interrupted by intervention of foreign governments is considered as 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.
Agreement between two parties to exchange cash flows in future and cash flows are based on underlying instruments is classified as
A. swaps
B. interchange
C. exchange
D. index
✅ The correct answer is option A.
Agreement between two parties to exchange cash flows in future and cash flows are based on underlying instruments is classified as swaps. A swap is a derivative contract through which two parties exchange the cash flows or liabilities from two different financial instruments.
Agreement between two parties to exchange cash flows in future and cash flows are based on underlying instruments is classified as swaps. A swap is a derivative contract through which two parties exchange the cash flows or liabilities from two different financial instruments.
The activities of ADB include
A. project financing
B. guaranteeing loans
C. both a and b
D. risk management products
✅ The correct answer is option C.
The activities of ADB include project financing and guaranteeing loans. ADB offers the public sector different types of financial products, which includes loans, grants, technical assistance, guarantees, and debt management products.
The activities of ADB include project financing and guaranteeing loans. ADB offers the public sector different types of financial products, which includes loans, grants, technical assistance, guarantees, and debt management products.
Which of the following factors does not increase the bargaining power of a supplier?
A. Substitutability
B. Concentration of suppliers
C. A buyer is important to the supplier
D. High switching costs
✅ The correct answer is option C.
A buyer is important to the supplier does not increase the bargaining power of a supplier. The idea is that the bargaining power of the supplier in an industry affects the competitive environment for the buyer and influences the buyer’s ability to achieve profitability. Strong suppliers can pressure buyers by raising prices, lowering product quality, and reducing product availability.
A buyer is important to the supplier does not increase the bargaining power of a supplier. The idea is that the bargaining power of the supplier in an industry affects the competitive environment for the buyer and influences the buyer’s ability to achieve profitability. Strong suppliers can pressure buyers by raising prices, lowering product quality, and reducing product availability.
Private placed stock and privately placed bonds are considered as
A. most illiquid securities
B. most liquid securities
C. least liquid securities
D. least illiquid securities
✅ The correct answer is option A.
Private placed stock and privately placed bonds are considered as most illiquid securities. Illiquid stocks are the ones which cannot be sold easily because they see limited trading.
Private placed stock and privately placed bonds are considered as most illiquid securities. Illiquid stocks are the ones which cannot be sold easily because they see limited trading.