Default Risk Multiple Choice Questions with Answers – PDF Download

MCQ 1: The securities with the lower default risk and having highest credit quality are assigned the rating of:

1. double B
2. triple B
3. triple A
4. double A

MCQ 2: If the revenue bonds becomes default, the bondholders must:

1. not be paid
2. be paid
3. be sold
4. not be sold

MCQ 3: The default risk is measured by large traders, managers and investors with the help of:

1. sinking analysis
2. analyzing financial ratios
3. portfolio scenario value
4. automated machine analysis

MCQ 4: In the dimension of default risk, the municipal bonds are considered as:

1. default risk free
2. not default risk free
3. not indexed
4. must be indexed

MCQ 5: The reason of default risk on municipal bonds is because of:

1. economic recession
2. economically indexed
3. not economically indexed
4. active trading