Financial Security MCQs with Answers PDF Download – Test 38

MCQ 186: The interest rate that investors receive on financial security to calculate fair value of security is classified as:

1. forward rate of return
2. unturned rate of return
3. required rate of return
4. termed rate of return

MCQ 187: The type of financial markets in which the corporations issues new funds to raise funds is classified as:

1. flow market
2. primary markets
3. secondary markets
4. funding markets

MCQ 188: The difference between net proceeds and gross proceeds is called:

1. non-participating spread
2. participating spread
3. under writer spread
4. over writer spread

MCQ 189: The factors considered by rating agencies on issuing bonds are:

1. position in industry
2. overall financial strength
3. issuer's profitability and liquidity
4. all of the above

MCQ 190: The intrinsic value of put option is:

1. exercise price ⁄ stock price
2. exercise price - stock price
3. exercise price + stock price
4. exercise price x stock price