Management MCQs

Bid-ask spread in foreign exchange market is the

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A. price of currency in foreign exchange market
B. difference between bid and ask quotes for a currency
C. price at which a bank will buy a currency
D. price a bank will pay for a currency
✅ The correct answer is option B.
Bid-ask spread in foreign exchange market is the difference between bid and ask quotes for a currency. A bid-ask spread is the amount by which the ask price exceeds the bid price for an asset in the market. The bid-ask spread is essentially the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept.

The first step in the e-selection process is

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A. consider how the various new stakeholders and clients will use the system
B. train the employees that will be responsible for the administration of the process
C. draw-up a flow chart of the current assessment process
D. draft the desired flow process that will result from the E-selection process
✅ The correct answer is option C.
The first step in the e-selection process is draw-up a flow chart of the current assessment process. This is an assessment that looks at employee and organizational knowledges, skills, and abilities, to identify any gaps or areas of need.

Which exchange commenced trading in currency in 1982

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A. Philadelphia
B. Mexican peso
C. Bimsetallism
D. Smithsonian
✅ The correct answer is option A.
Philadelphia exchange commenced trading in currency in 1982. In 1982, stock exchanges of Montreal and Philadelphia introduced standardised currency options. Thereafter, Chicago Mercantile Exchange, LIFFE of London, Sydney Futures Exchange, MATIF of Paris and some others started trading in standardised currency Options

In any of the system _____ resource is consider as people resources.

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A. end user
B. hardware
C. data
D. software
✅ The correct answer is option A.
In any of the system end user resource is consider as people resources. People are considered a resource because with their demands and capabilities they can create new resources.

The transactions that came into being when borrowing and lending of excess money occurs are considered as

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A. annual funds transaction
B. liable funds transactions
C. federal funds transaction
D. functional funds transaction
✅ The correct answer is option C.
The transactions that came into being when borrowing and lending of excess money occurs are considered as federal funds transaction. Federal funds, often referred to as fed funds, are excess reserves that commercial banks and other financial institutions deposit at regional Federal Reserve banks; these funds can be lent, then, to other market participants with insufficient cash on hand to meet their lending and reserve needs.

Institutions that facilitate channelling of funds and all related functions are classified as

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A. financial institutions
B. payable institutions
C. non-financial institutions
D. derivative institutions
✅ The correct answer is option A.
Institutions that facilitate channelling of funds and all related functions are classified as financial institutions. A financial institution (FI) is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange.

Operations Research is a ____________.

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A. Science
B. Art
C. Mathematics
D. Both A and B
✅ The correct answer is option D.
Operations Research is a Science and Art. Operations Research is an Art and Science It had its early roots in World War II and is flourishing in business and industry with the aid of computer Primary applications areas of Operations Research include forecasting, production scheduling, inventory control, capital budgeting, and transportation.

Who concern with relations between security returns

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A. Markowitz diversification
B. random diversification
C. Friedman diversification
D. correlating diversification
✅ The correct answer is option A.
Markowitz diversification concern with relations between security returns. Markowitz diversification is a strategy that seeks to combine in a portfolio assets with returns that are less than perfectly positively correlated, in an effort to lower portfolio risk (variance) without sacrificing return. Related: Naive diversification.

A broad, general and written statement of a specific job based on the findings of an analysis is called as

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A. Specific Job Design
B. Job Identification
C. Job Analysis
D. Job Description
✅ The correct answer is option C.
A broad, general and written statement of a specific job based on the findings of an analysis is called as Job Analysis. It generally includes duties, purpose, responsibilities, scope, and working conditions of a job along with the job’s title, and the name or designation of the person to whom the employee reports.

For a taxable security, tax exempted interest rate on municipal bonds us used to determine

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A. tax equivalent rate of return
B. local rate of return
C. withholding tax rate
D. general sales tax rate
✅ The correct answer is option A.
For a taxable security, tax exempted interest rate on municipal bonds us used to determine tax equivalent rate of return.