Commercial Paper Notes Questions with Answers PDF Download – Test 3

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

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

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

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

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