Commercial Paper Quiz PDF: Questions and Answers - 3

MCQ 11: The commercial paper issued with low interest rate thus the commercial paper are categorized as

1. payables rating
2. commercial rating
3. poor credit rating
4. better credit rating

MCQ 12: The stocks or shares that are sold to investors without transacting through financial institutions are classified as

1. direct transfer
2. indirect transfer
3. global transfer
4. pension transfer

MCQ 13: 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 14: Consider the buying of put option, the probability that a buyer would have negative payoff increases with the

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

MCQ 15: The special provisions that can have adverse or beneficial effects and are reflected in interest rates do not include

1. tax-ability
2. covert ability
3. call ability
4. inflation premium