Trading Process in Bond Markets Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The issues sold by investment banks and guarantees the issuer by buying new issue at fixed price is classified as

1. index commitment underwriting
2. insurance underwriting
3. default risk underwriting
4. firm commitment underwriting

MCQ 2: In firm commitment underwriting procedure, the more risk is at the side of

1. investment bank
2. insurance firm
3. reissuing firm
4. reselling firm

MCQ 3: The issuance of securities in which investment bank does not guarantee back up price and act as distributor, in planning of issue is considered as

1. best efforts offering
2. least good index
3. least good premium
4. least good discount price

MCQ 4: In firm commitment underwriting, the securities issued are then sold to investors at relatively

1. higher price
2. lower price
3. indexed price
4. commercial price

MCQ 5: The situation in which the investment bank faces no risk of mispricing regarding security is considered as

1. least good premium
2. least good discount price
3. best efforts offering
4. least good index