Management MCQs

Based on interest rate parity, the larger the degree by which the foreign interest rate exceeds the UK interest rate, the.

by
A. larger will be the forward discount of the foreign currency
B. larger will be the forward premium of the foreign currency
C. smaller will be the forward premium of the foreign currency
D. smaller will be the forward discount of the foreign currency
✅ The correct answer is option A.
Based on interest rate parity, the larger the degree by which the foreign interest rate exceeds the UK interest rate, the larger will be the forward discount of the foreign currency. Interest rate parity (IRP) is a theory in which the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate.

Formed in 1960 is

by
A. World Trade Organization
B. World Bank
C. Regional Development Agency
D. International Development Association
✅ The correct answer is option D.
International Development Association. It was established in 1960 to complement the existing International Bank for Reconstruction and Development by lending to developing countries which suffer from the lowest gross national income, from troubled creditworthiness, or from the lowest per capita income.

Type of markets which trades underwritten bonds syndicated by some other countries is classified as

by
A. international markets
B. national markets
C. local markets
D. state markets
✅ The correct answer is option A.
Type of markets which trades underwritten bonds syndicated by some other countries is classified as international markets. An international market is defined geographically as a market outside the international borders of a company’s country of citizenship. A company, to the extent that it is a legally distinct entity from its owners like a corporation, is usually a citizen of the country where it is organized.

Payback period is multiplied for constant increase in yearly future cash flows to calculate

by
A. cash value of money
B. net initial investment
C. net future value
D. time value of money
✅ The correct answer is option B.
Payback period is multiplied for constant increase in yearly future cash flows to calculate net initial investment. Net investment is the amount spent by a company or an economy on capital assets, or gross investment, less depreciation. Net investment helps give a sense of how much money a company is spending on capital items used for operations, such as property, plants, equipment, and software.

Experimental sources of information for consumers refer to ____________.

by
A. Advertising, marketing, selling, and profit making
B. Handling, examining, and trying the product while shopping
C. Buying after a demonstration
D. Buying the product directly from a manufacturer
✅ The correct answer is option B.
Experimental sources of information for consumers refer to Handling, examining, and trying the product while shopping. The experiment is designed to explore the perception of public service users about performance information by information types and sources.

Which one of the following is not a future pattern identified by Courtney et al. (1997)

by
A. A limited and definable number of discrete alternatives which can be evaluated and judged by strategic managers
B. A limited and definable number of alternatives which cannot be evaluated nor judged with any great certainty
C. A limited but undefinable number of discrete alternatives which can be evaluated and judged
D. A limited but undefinable number of discrete alternatives that cannot be evaluated nor judged at all
✅ The correct answer is option A.
A limited and definable number of discrete alternatives which can be evaluated and judged by strategic managers is not a future pattern identified by Courtney et al. (1997).

Quantity of manufactured goods are sold at which total cost equal, is known as

by
A. breakeven point
B. cost point
C. revenue point
D. quantity point
✅ The correct answer is option A.
Quantity of manufactured goods are sold at which total cost equal, is known as breakeven point. The break-even point can be defined as a point where total costs (expenses) and total sales (revenue) are equal. Break-even point can be described as a point where there is no net profit or loss.

A policy which is inferred from the behaviour of the superior is

by
A. specific policy
B. external policy
C. appealed policy
D. implicit policy
✅ The correct answer is option D.
Implicit policies are similar to norms that govern individuals within an institution, but they are not formally recorded. Even though implicit policies are not recorded, they still have an authority within the institution that stems from the fact that individuals within the institution follow them.