Financial Security Multiple Choice Questions with Answers – PDF Download

MCQ 1: 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

MCQ 2: 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

MCQ 3: 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

MCQ 4: 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

MCQ 5: 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