Question No: 1 ( Marks: 1 ) - Please choose one
Which of the following is the final mode of payment?
► Money
► ATM
► Cheque
► Yet to discover
Question No: 2 ( Marks: 1 ) - Please choose one
Which of the following statement truly represents the main difference between debit card and store value card?
► Debit card is operated by ATM machine while Store value card doesn’t
► Debit card appearance is different from Store value card
► Debit card is not specific for user but store value card is specific
► Debit card is specific for user but store value card is not
Question No: 3 ( Marks: 1 ) - Please choose one
Which of the following statements is correct?
► If you can buy the same goods this year as you bought last year with less money the money supply decreased.
► To purchase the same goods today that were purchased one year ago requires more money, there must have been inflation
► To purchase the same goods today as one year ago requires less money, the money supply must have increased
► To purchase the same goods today that were purchased one year ago requires the same amount of money, there must have been inflation
Question No: 4 ( Marks: 1 ) - Please choose one
Which of the following is the difference that lies between the options and futures?
► Options is not binding whereas future is binding
► Futures carry risks but Options didn’t carry risk
► Centralized clearinghouses guarantee futures but not options contracts
► There is no difference between options and futures
Question No: 5 ( Marks: 1 ) - Please choose one
Which of the following describes the general formula for the calculation of the compound interest?
► FV = PV/(1+i) n
► FV = PV/(1-i) n
► FV = PV*(1+i) n
► FV = PV*(1-i) n
Question No: 6 ( Marks: 1 ) - Please choose one
What is true about the relationship between standard deviation and risk?
► Greater the standard deviation greater will be the risk
► Greater the standard deviation lower will be the risk
► Greater the standard deviation risk will be remained the same
► No relation between them
Question No: 7 ( Marks: 1 ) - Please choose one
Current yield is equal to which of the following?
► Price paid / yearly coupon payment
► Price paid *yearly coupon payment
► Yearly coupon payment / face value of bond
► Yearly coupon payment / price paid
Question No: 8 ( Marks: 1 ) - Please choose one
The risk premium of a bond will:
► Higher for investment-grade bonds than for high-yield bonds
► Positive but small if the risk of default is zero
► Decrease when the default risk rises
► Increase when the risk of default rises
Question No: 9 ( Marks: 1 ) - Please choose one
Requiring a large deductible on the part of an insured is one way insurers treat the problem of:
► Free-riding
► Moral hazard
► Adverse selection
► The Lemons market
Question No: 10 ( Marks: 1 ) - Please choose one
Which of the following does not include in marketable securities?
► Common stocks
► Bonds of the U.S. Treasury
► Treasury Bills
► Non transaction deposits
Question No: 11 ( Marks: 1 ) - Please choose one
___________ is a component of the liability side of the commercial bank’s balance sheet.
► Deposits
► Loans
► Securities
► All of the given options
Question No: 12 ( Marks: 1 ) - Please choose one
A stand by letter of credit is a form of:
► Loan
► Insurance
► Security
► Deposits
Question No: 13 ( Marks: 1 ) - Please choose one
Funds of depository institution are primarily used in which of the following?
► Corporate bonds, Government bonds, Stocks, Mortgage
► Cash, Loan, Securities
► Stocks, Government bonds, corporate bonds, commercial papers
► Commercial papers, Bonds
Question No: 14 ( Marks: 1 ) - Please choose one
Securities firms include _________.
► Brokerage firms
► Investment banks
► Mutual fund companies
► All of the given options
Question No: 15 ( Marks: 1 ) - Please choose one
_________is the combination of the term life insurance and savings account.
► Property insurance
► Health insurance
► Whole life insurance
► Casualty insurance
Question No: 16 ( Marks: 1 ) - Please choose one
Which of the following is a Primary source of funds of Finance company?
► Bonds
► Policy benefits to be paid out to futures
► Loan guarantees
► Shares sold to customers
Question No: 17 (Marks: 1) - Please choose one
What matters most during a bank run is _________________.
► The liquidity of the bank
► The solvency of the bank
► The number of depositors
► Safety of bank
Question No: 18 ( Marks: 1 ) - Please choose one
Khushhali bank is:
► A Finance company
► A Securities firm
► A Government sponsored enterprise
► An insurance company
Question No: 19 ( Marks: 1 ) - Please choose one
Under the purchase and assumption method of dealing with a failed bank, the FDIC ______________.
► Sells the failed bank to the Federal Reserve
► Finds another bank to take over the insolvent bank
► Takes over the day to day management of the bank
► Sells off the profitable loans of the failed bank in an open auction
Question No: 20 ( Marks: 1 ) - Please choose one
On which of the following success of monetary policy depends upon?
► It may be on the chance or by luck
► The institutional environment
► Competent people in responsible positions
► Both the institutional environment and Competent people in responsible positions
Question No: 21 ( Marks: 1 ) - Please choose one
For the Federal Reserve, the largest liability on their balance sheet is ________.
► Non-bank currency
► Reserves
► Government accounts
► Treasury certificates
Question No: 22 ( Marks: 1 ) - Please choose one
An open market purchase of U.S. Treasury securities by the Fed will cause the Fed's balance sheet to show _________.
► A decrease in the asset of securities and a decrease in the liability of reserves
► A decrease in the liability of reserves
► No change in the size of balance sheet except composition of assets
