Stock Market Securities MCQs (Multiple Choice Questions) PDF Download | 14

The capital gain is subtracted from return to stockholders to calculate

1. periodic dividend payments
2. constant spot rate payment
3. constant forward rate payment
4. constant future rate payment

As compared to non-convertible bonds, the yield on the convertible bond is

1. relatively lower
2. relatively higher
3. relatively zero
4. relatively discounted

Consider the call option writing, the probability that a buyer would have positive payoff increases with the

1. increase in stock price
2. decrease in stock price
3. increase in maturity duration
4. decrease in maturity duration

According to demand for funds curve, the demand curve shifts to right if there is an increase in

1. equilibrium demand
2. equilibrium interest rate
3. equilibrium supply
4. equilibrium savings

The instrument used by Federal Reserve to smooth the money supply and interest rates include

1. treasury notes
2. repurchase agreements
3. commercial payable notes
4. commercial receivable notes