Management MCQs

Type of security backed by mortgage cash flows and are packed by financial instruments is classified as

by
A. cash mortgage
B. securitized mortgage
C. financial mortgage
D. instrumental mortgage
✅ The correct answer is option B.
Type of security backed by mortgage cash flows and are packed by financial instruments is classified as securitized mortgage. Securitization is the procedure where an issuer designs a marketable financial instrument by merging or pooling various financial assets into one group. The issuer then sells this group of repackaged assets to investors. Securitization offers opportunities for investors and frees up capital for originators, both of which promote liquidity in the marketplace.

Resellers may actually take ownership of the product and participate in the marketing, including the advertising.

by
A. TRUE
B. FALSE
Answer: Option A
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✅ The correct answer is option A.
Resellers may actually take ownership of the product and participate in the marketing, including the advertising. Resellers buy finished products and resell them to their customers for the purpose of making a profit. Resellers do not modify the products they buy. Resellers can be wholesalers who sell their products to other resellers or retailers who sell their products to end users.

People cannot interact with each other without ________.

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A. Communication
B. Transport
C. Voice
D. Loudspeaker
✅ The correct answer is option A.
People cannot interact with each other without Communication. Without being able to express themselves and listen to another, partners cannot achieve intimacy. By developing your communication skills, you and your partner will be able to establish and preserve a loving, respectful relationship between two people who love each other.

Largest number of buyers and sellers, greater the

by
A. liquidity
B. speculation
C. hedging
D. forward rate
✅ The correct answer is option A.
Largest number of buyers and sellers, greater the liquidity. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words: the ease of converting it to cash.

Principal value of TIPS is increased or decreased and is based on measure of

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A. consumer price index
B. manufacturing price index
C. auction selling index
D. inflation payment index
✅ The correct answer is option A.
Principal value of TIPS is increased or decreased and is based on measure of consumer price index. The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

Type of unit which guarantees that all buying and selling will be made by traders of exchange is called

by
A. trading house
B. guarantee house
C. clearing house
D. professional house
✅ The correct answer is option C.
Type of unit which guarantees that all buying and selling will be made by traders of exchange is called clearing house. A clearing house acts as an intermediary between a buyer and seller and seeks to ensure that the process from trade inception to settlement is smooth. Its main role is to make certain that the buyer and seller honor their contract obligations.

The biggest problem facing e-HR is the

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A. rarity of HR
B. diversity of HR
C. security of HR data
D. substitutability of HR
✅ The correct answer is option C.
The biggest problem facing e-HR is the security of HR data. E-HRM is the (planning, implementation and) application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities.

If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually

by
A. increase in value
B. remain unchanged
C. decrease in value.
D. be returned to corporation.
✅ The correct answer is option C.
If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually decrease in value. A fixed-rate bond is a bond that pays the same amount of interest for its entire term.