Accounting
MCQsQuestion.com has 1589 Question/Answers about Topic Accounting
Bonds that are backed by cash flow from project and are sold to finance particular project are classified as
- A. finance bonds
- B. revenue bonds
- C. financing bonds
- D. project bonds
- Correct Answer: Option B
Agreement which incurs transaction between two parties and promise held that second party will sell security at specific maturity is classified as
- A. repurchasing commercial notes
- B. repurchase bills
- C. purchase agreement
- D. reverse repurchase agreement
- Correct Answer: Option D
Speed with which prices of stocks are adjusted to unexpected news related to interest rates is called
- A. news efficiency
- B. adjusted efficiency
- C. expected efficiency
- D. market efficiency
- Correct Answer: Option D
Difference between price of underlying asset and exercise price of option is classified as
- A. extrinsic value of European option
- B. intrinsic value of option
- C. extrinsic value of option
- D. intrinsic value of European option
- Correct Answer: Option B
Forgone amount for holding balances of cash at time they are received is classified as
- A. forgone cost
- B. debt cost
- C. opportunity cost
- D. balances cost
- Correct Answer: Option C
Gross proceeds of stock is $37000 and underwriter spread is $25000
- A. $25,000.00
- B. $37,000
- C. $12,000
- D. $62,000
- Correct Answer: Option C
Type of index in which current values of stock are added together and divided by value of stock on base date is classified as
- A. value weighted index
- B. herring weighted index
- C. primary market index
- D. stock market index
- Correct Answer: Option A
Investors who want cash flows in near terms shows preference for
- A. interest portion of RIAPS
- B. interest portion of STORI
- C. interest portion of STRIPS
- D. interest portion of bonds
- Correct Answer: Option C
As compared to US certificate of deposit, interest rate paid on Eurodollar certificate of deposits is
- A. higher than other one
- B. lower than other one
- C. contraction than other one
- D. expansionary than other one
- Correct Answer: Option A
Type of contract which involves immediate exchange of funds and assets is classified as
- A. spot contract
- B. forward contract
- C. future contracts
- D. present contract
- Correct Answer: Option A
Primary mortgages involves
- A. three institutions
- B. single investor
- C. multiple investor
- D. multiple institutions
- Correct Answer: Option B
Bonds issued by corporations for relatively longer term are classified as
- A. long term bonds
- B. short term bonds
- C. corporate bonds
- D. Federal Reserve bonds
- Correct Answer: Option C
When price of underlying asset increases then good option is
- A. buy call option
- B. sell call option
- C. buy put option
- D. sell put option
- Correct Answer: Option A
Instrument used by Federal Reserve to smooth money supply and interest rates includes
- A. treasury notes
- B. repurchase agreements
- C. commercial payable notes
- D. commercial receivable notes
- Correct Answer: Option B
If revenue bonds becomes default, bondholders must
- A. not be paid
- B. be paid
- C. be sold
- D. not be sold
- Correct Answer: Option B