Financial Security MCQ (Multiple Choice Questions) PDF Download

The type of financial security which have linked payoff to another issued security is classified as

1. linked security
2. derivative security
3. payable security
4. non-issuing security

The interest rate that investors receive on financial security to calculate fair value of security is classified as

1. forward rate of return
2. unturned rate of return
3. required rate of return
4. termed rate of return

If the risk of financial security decreases and the supply curve shifts to the right and downwards then the impact on equilibrium of interest rate must

1. remain constant
2. fluctuate
3. decreases
4. increases

The type of financial security having payoffs which are connected to some securities issued some time back, is classified as

1. linked security
2. previous security
3. payoff security
4. derivative security

If the risk of financial security increases and the supply curve shifts to the left then the impact on equilibrium of interest rate must

1. decreases
2. increases
3. positive
4. negative