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Financial Markets And Institutions Quiz 2 (30 MCQs)

Quiz Instructions

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1. The technique of spreading funds over a large number of investments to reduce the portfolio's overall risk is known as
2. Money that has no intrinsic value and is legal tender only because of government decree is called
3. Starx Enterprises stock is currently RM26.50 per share. You expect that earnings next year will be RM2 per share and it should pay a RM1 dividend. You find that the P/E multiple is 15 times on average. Determine the stock price you would expect for the company.
4. Debt Instrument are issued by Corporate Houses are raising short term financial resources from the money market are called .....
5. ..... is a part of capital market.
6. Financial contracts whose values are derived from the values of underlying assets is called
7. ..... a market in which all financial assets can be sold to someone other than the original issuer
8. Gong Badak Kitchen recently sold 1, 000 shares of preferred stock. Determine the per share value of the stock if there is a 10 percent required rate of return and a preferred dividend of RM6.75.
9. A short term debt obligation backed by govt.with a maturity of less than 1 year.
10. The term of the Treasury Bill cannot be more than ..... year.
11. Which of the following TERM does not belong to the stock exchange?
12. Spot Market is a market where the delivery of the financial instrument and payment of cash occurs
13. Which of the following statements about risk is TRUE?
14. An alternative method for estimating a stock price is to multiply the firm's earnings per share times the industry price earnings ratio. However, this ratio cannot be adjusted up or down to reflect specific characteristics of the firm.
15. Which of the following markets deal in securirties with maturity of less than one year?
16. Which of the following assets is best desribed as, "near money" ?
17. The SEC is a government agency that oversees FINRA
18. ..... a market in which only the original issuer can sell or repurchase a financial asset
19. Kate could not attend the last shareholders meeting and thus she granted the authority to vote on her behalf to the managers of the firm. Which one of the following terms is used to describe the method by which Kate's shares were voted?
20. Funds that collect and invest income until payments are made to eligible (retired) people are known as
21. Why, in particular, is liquidity insurance necessary?
22. Clearing and settlement operations of NSE are carried out by:
23. The short term financial market is called the
24. Purification of investment income received means that certain proportion of the dividend, which corresponds to the proportion of interest earned by the company, must be given to charity.
25. Identify the instrument of Money Market:It is used by commercial and development and financial Institutions during the period when the deposit growth of a bank is slow but the demand for credit is high
26. Non marketable assets are
27. Primary market is associated with ..... issues.
28. Which of the following cannot accept Demand Deposits?
29. Venture capitalists typically provide funds to high-risk startup companies but take no active role in their management.
30. Which of the following falls in the Category of Zero Coupon Bond?
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