Stock Market Securities MCQs with Answers PDF Download – Test 14

MCQ 66: 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

MCQ 67: 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

MCQ 68: 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

MCQ 69: 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

MCQ 70: 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