Derivative Securities Market MCQs with Answers PDF Download – Test 54

MCQ 266: The type of financial security whose payoff is linked to any other security is called:

1. strong security
2. semi-strong security
3. derivate security
4. non-derivate security

MCQ 267: The form of market efficiency which considers the speed with which the information at public level is impounded in the prices of stock is classified as:

1. semi-strong form market efficiency
2. expensive form market efficiency
3. weak form of market efficiency
4. strong form of market efficiency

MCQ 268: The risk arises from trading of assets because of change in asset prices and exchange rates is classified as:

1. asset risk
2. trade risk
3. market risk
4. exchange risk

MCQ 269: The Federal reserve, money market brokers and dealers, mutual funds and US treasury are all participants of:

1. liquid markets
2. money markets
3. transaction markets
4. functional markets

MCQ 270: The theory according to which the difference between expected appreciation and foreign interest must be equal to domestic interest rate, is called:

1. interest rate parity theorem
2. appreciation parity theorem
3. domestic parity theorem
4. foreign interest parity theorem