All Free Management Sciences MCQs with Answers
Every Management Sciences question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.
3,770 questions · page 27 of 189
- A. developed mortgages
- B. dwelling mortgages
- C. commercial mortgages
- D. non-commercial mortgages
Explanation: Mortgages for income-producing properties such as shopping malls and office buildings are commercial mortgages.
Correct answer: commercial mortgages- A. secondary loan
- B. primary loan
- C. mortgages
- D. swapped mortgages
Explanation: A mortgage is a loan secured by real property, such as land, a house or another building.
Correct answer: mortgages- A. three institutions
- B. single investor
- C. multiple investor
- D. multiple institutions
Explanation: A primary mortgage is typically originated directly between one borrower and one lending institution or investor.
Correct answer: single investor- A. repurchase agreement yields
- B. purchase agreement yields
- C. repurchase yields
- D. transaction yields
Explanation: A repurchase agreement yield uses the difference between the repurchase and selling prices, annualised over the 360-day money-market year…
Correct answer: repurchase agreement yields- A. higher than other one
- B. lower than other one
- C. contraction than other one
- D. expansionary than other one
Explanation: Eurodollar certificates of deposit generally pay higher rates because dollar deposits outside the United States are not subject to the…
Correct answer: higher than other one- A. annual loan market
- B. federal funds market
- C. functional funding market
- D. secured funding market
Explanation: The federal funds market provides banks with highly liquid, short-term funds, often overnight, to manage reserve positions.
Correct answer: federal funds market- A. forgone cost
- B. debt cost
- C. opportunity cost
- D. balances cost
Explanation: The benefit forgone when cash is held instead of invested or used elsewhere is its opportunity cost.
Correct answer: opportunity cost- A. extensive funds
- B. federal funds
- C. intensive funds
- D. premium funds
Explanation: Overnight borrowing and lending among banks is conducted in the federal funds market.
Correct answer: federal funds- A. 0.525
- B. 0.4114
- C. 0.4214
- D. 0.4514
Explanation: The discount yield is calculated as (10,000 − 8,000) ÷ 10,000 × 360 ÷ 175 = 0.4114, or about 41.14%.
Correct answer: 0.4114- A. decentralized
- B. centralized
- C. federalize
- D. commercialize
Explanation: A decentralized treasury-bill market has transactions conducted directly between participants through communication channels such as…
Correct answer: decentralized- A. face value
- B. book value
- C. premium value
- D. federal value
Explanation: Treasury bills are zero-coupon instruments issued below their face value and redeemed at face value on maturity.
Correct answer: face value- A. brokers and dealers
- B. corporations
- C. other financial institutions
- D. all of the above
Explanation: Commercial paper is bought by a broad group of money-market investors, including corporations, financial institutions, brokers, and…
Correct answer: all of the above- A. money markets
- B. capital markets
- C. debt markets
- D. economic markets
Explanation: Money markets deal in short-term instruments, whereas capital markets deal in longer-term debt and equity securities.
Correct answer: capital markets- A. federal funds
- B. premium funds
- C. discount funds
- D. mean funds
Explanation: Federal funds are short-term funds transferred, usually overnight, among depository institutions to manage reserve positions.
Correct answer: federal funds- A. repurchasing commercial notes
- B. repurchase bills
- C. repurchase agreement
- D. reverse repurchase agreement
Explanation: A repurchase agreement is a sale of securities with a promise by the seller to repurchase them later at a specified price.
Correct answer: repurchase agreement- A. borrowing rate
- B. supplying rate
- C. lending rate
- D. federal funds rate
Explanation: The federal funds rate is the interest rate charged on short-term loans of federal funds between eligible financial institutions.
Correct answer: federal funds rate- A. functional loans
- B. annual loans
- C. unsecured loans
- D. secured loans
Explanation: Federal funds transactions are generally unsecured loans between financial institutions, relying on the creditworthiness of the borrowing…
Correct answer: unsecured loans- A. highest bidder
- B. lower bidder
- C. zero bidder
- D. non-competitive bidder
Explanation: In a competitive treasury-bill auction, bids are ranked and the most favourable accepted bid receives allocation first; this is typically…
Correct answer: highest bidder- A. secured investors
- B. federal investors
- C. small investors
- D. large investors
Explanation: Non-competitive bidding lets applicants receive treasury bills at the auction’s accepted yield without competing on price.
Correct answer: small investors- A. money markets
- B. capital markets
- C. debt markets
- D. economic marketsAccounting & Auditing
Explanation: The money market deals in short-term instruments, generally maturing within one year, such as treasury bills and commercial paper.
Correct answer: money markets