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Financial Markets MCQs (BBA Finance) From Textbook

Financial Markets MCQs – Practice Test 7 (Chapter 4)

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Introduction to Financial Markets Quiz – Practice Test 7 PDF Download

MCQ 31: The risk arises from trading of assets because of change in asset prices and exchange rates is classified as:

  1. asset risk
  2. trade risk
  3. market risk
  4. exchange risk

MCQ 32: The type of institutions that write securities, engage in brokerage and security trading are considered as:

  1. trading institutions
  2. activity institutions
  3. investment banks
  4. mortgage banks

MCQ 33: The issuers that are not involved directly in funds transferring are classified as:

  1. individual issuers
  2. corporate issuers
  3. local issuers
  4. global issuers

MCQ 34: The situation in which the claims by financial institutions is more considerable for investors then the claims issued by corporations, is classified as:

  1. asset transformers
  2. liability transformers
  3. issuing transformers
  4. claiming transformers

MCQ 35: The reduction of risk by holding large number of securities in portfolio of assets is classified as:

  1. diversification
  2. selling ability
  3. reduction ability
  4. director ability

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