Repurchase Agreement Multiple Choice Questions (MCQs) PDF Download - 76

Financial panic that produce large losses for public can cause

1. serious damage to economy
2. problems for investors
3. pulling of funds
4. soundness of institutes

The type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as

1. non participating preferred stock
2. participating preferred stock
3. non-cumulative preferred stock
4. cumulative preferred stock

The STRIPS are used effectively to receive

1. One set of payment
2. Two sets of payments
3. Three sets of payments
4. Four sets of payments

In equilibrium position, the spread between foreign and domestic rate of interest must be equal to spread of

1. domestic rates
2. forward and spot exchange rates
3. forward rate
4. spot rates

The value of option issued to call debt is $670 and return rate on callable bond is $540 then return rate on non-callable bond is

1. 1210
2. 1010
3. 130
4. 1020