Thursday, July 30, 2009

Quiz of MGT411

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Currency-to-deposit ratio is a factor that affects the quantity of money. This factor is controlled by which of the following?
Select correct option:

Central bank

Bank regulators

Commercial banks

Non bank public
Question # 7 of 20 ( Start time: 08:07:59 PM ) Total Marks: 1
One argument for an independent central bank is:
Select correct option:

Without independence competent people would not take a position in a central bank

Successful monetary policy requires a long time horizon usually well beyond the next election of most public officials

Politicians have a long-run focus that is not well tuned to addressing economic problems

Central bankers have a short run focus that usually corrects problems faster

Question # 8 of 20 ( Start time: 08:09:21 PM ) Total Marks: 1
Liquidity is the risk that is arises as a result of which one of the following consequences?
Select correct option:

It arises when loan is not repaid

It arises because of sudden demands of funds

It arises when two sides of the balance sheet do not match up

It arises when banks make additional profit by using derivatives

Question # 9 of 20 ( Start time: 08:09:55 PM ) Total Marks: 1
If YTM is greater than the coupon rate the price of the bond is __________.
Select correct option:

Greater than its face value

Lower than its face value

Equals to its face value

All of the given options

Question # 10 of 20 ( Start time: 08:10:50 PM ) Total Marks: 1
With direct finance we mean which of the following?
Select correct option:

Individuals (or firms) borrow directly from the savers

Individuals (or firms) borrow directly from banks.

Individuals deposit savings directly in banks.

Firms deposit savings directly in banks.

Question # 11 of 20 ( Start time: 08:12:08 PM ) Total Marks: 1
Which of the following type/s of transaction/s affect the balance sheets of both the central bank and the banking system?
Select correct option:

An open market operation

A foreign exchange intervention

Central bank’s extension of a discount loan

All of the given options

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