Commercial Paper Notes Questions with Answers PDF Download – Test 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