Loanable Funds in FMI Multiple Choice Questions (MCQs) PDF Download - 64

The shift of demand curve to down and then to the left resulting in

1. support from World Bank
2. decreases in funds traded
3. increase in funds traded
4. rise of international funds

The value of conversion option to bond holder is $740 and the rate of return on non-convertible bond is $540 then rate of return on convertible bond is

1. 0.0137
2. 1280
3. 1.37
4. 200

The issuance of securities in which investment bank does not guarantee back up price and act as distributor, in planning of issue is considered as

1. best efforts offering
2. least good index
3. least good premium
4. least good discount price

The deposits that are required in future contract and considered as guarantee, that the conditions of contracts would be fulfilled is classified as

1. initial margin
2. futures margin
3. conditional margin
4. non-conditional margin

The direct relationship between price change and interest rate change is represented by

1. positive duration
2. positive discount
3. negative discount
4. negative duration