Management MCQs

Longer debt instrument issued by government and corporations is considered as

by
A. contraction bonds
B. expansion bonds
C. dollar bonds
D. bonds
✅ The correct answer is option D.
Longer debt instrument issued by government and corporations is considered as bonds. A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital. They are essentially loan agreements between the bond issuer and an investor, in which the bond issuer is obligated to pay a specified amount of money at specified future dates.

Interest rate considering compounding of interest rate and is earned in 12 months is considered as

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A. effective annual return
B. ineffective annual return
C. decrease in return
D. increase in return
✅ The correct answer is option A.
Interest rate considering compounding of interest rate and is earned in 12 months is considered as effective annual return. Effective annual return (EAR) is the annual rate that captures the magnifying effect of multiple compounding periods per year of an investment.

A feasible solution to an LP problem.

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A. Must satisfy all of the problem’s constraints simultaneously
B. Need not satisfy all of the constraints, only some of them
C. Must be a corner point of the feasible region
D. Must optimize the value of the objective function
✅ The correct answer is option A.
A feasible solution to an LP problem must satisfy all of the problem’s constraints simultaneously. A feasible solution is a set of values for the decision variables that satisfies all of the constraints in an optimization problem. A local optimal solution is one where there is no other feasible solution “in the vicinity” with a better objective function value.

Type of option that gives right to buyer to sell underlying option at specific exercise price is considered as

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A. call option
B. put option
C. European option
D. Australian option
✅ The correct answer is option B.
Type of option that gives right to buyer to sell underlying option at specific exercise price is considered as put option. A put option is a contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a pre-determined price within a specified time frame.

__________ examination may protect the company against unwarranted claims under workers compensation laws

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A. Written
B. Physical
C. Mental
D. Reference
✅ The correct answer is option B.
Physical examination may protect the company against unwarranted claims under workers compensation laws. Physical ability tests measure the physical ability of an applicant to perform a particular task or the strength of specific muscle groups, as well as overall strength and stamina. Physical ability tests may be conducted for potential employees in the manual and physical labor sectors.

Interest rate paid on traded Eurodollars is called as

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A. London intra bank offered rate
B. London interbank offered rate
C. euro interbank offered rate
D. demand intra bank rate
✅ The correct answer is option B.
Interest rate paid on traded Eurodollars is called as London interbank offered rate. The London Interbank Offered Rate is the average interest rate at which leading banks borrow funds from other banks in the London market.

Country A imports gold worth USD 100 million for commercial purposes. The transaction will affect

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A. Current account only
B. Capital account only
C. Official reserves account only
D. Both current account and capital account
✅ The correct answer is option D.
Country A imports gold worth USD 100 million for commercial purposes. The transaction will affect both current account and capital account.

Distinction between overall exports and imports is related to

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A. factor income
B. transfer Payments
C. balance of trade
D. account balance
✅ The correct answer is option C.
Distinction between overall exports and imports is related to balance of trade. The balance of trade is the difference between the value of a country’s imports and exports for a given period. The balance of trade is the largest component of a country’s balance of payments. Economists use the BOT to measure the relative strength of a country’s economy.