Derivative Securities Market Multiple Choice Questions with Answers – PDF Download

MCQ 1: The markets in which the derivatives are traded, are classified as:

1. assets backed market
2. cash flow backed markets
3. mortgage backed markets
4. derivative securities markets

MCQ 2: The situation in which the large portion of majority is borrowed from the broker of investor is classified as:

1. future investment
2. forward investment
3. leveraged investment
4. non-leveraged investment

MCQ 3: The type of contract which involves the future exchange of assets at a specified price is classified as:

1. future contracts
2. present contract
3. spot contract
4. forward contract

MCQ 4: The type of unit which guarantees that all the buying and selling will be made by traders of exchange is called:

1. trading house
2. guarantee house
3. clearing house
4. professional house

MCQ 5: The example of derivative securities is:

1. return backed security
2. mortgage backed security
3. cash flow backed security
4. interest backed security