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 28 of 189
- A. indirect certificate
- B. direct certificate
- C. negotiable certificate
- D. deposit certificate
Explanation: A bank deposit that is negotiable, carries a stated interest rate, and has a fixed maturity is a negotiable certificate of deposit.
Correct answer: negotiable certificate- A. serious damage to economy
- B. problems for investors
- C. pulling of funds
- D. soundness of institutesCurrencies & Foreign Exchange
Explanation: A financial panic can trigger widespread withdrawals, falling asset values, and disruption of credit, extending beyond individual…
Correct answer: serious damage to economy- A. money and security brokers
- B. capital brokers
- C. mortgage brokers
- D. expansionary brokers
Explanation: Financial-market intermediaries include dealers and brokers, including money brokers and securities brokers.
Correct answer: money and security brokers- A. 0.35
- B. 0.3
- C. 0.25
- D. 0.2
Explanation: In a Treasury auction, a single bidder is generally restricted from receiving more than 35% of the amount offered.
Correct answer: 0.35- A. unsecured notes
- B. debt paper
- C. term paper
- D. commercial paper
Explanation: Commercial paper consists of unsecured promissory notes issued by companies to obtain short-term financing.
Correct answer: commercial paper- A. commercial banks
- B. Swiss banks
- C. agriculture banks
- D. functional banksBanking
Explanation: A banker’s acceptance is a time draft accepted and guaranteed for payment by a commercial bank.
Correct answer: commercial banks- A. selling Swiss bills
- B. buying Swiss bills
- C. selling treasury bills
- D. buying treasury billsCurrencies & Foreign Exchange
Explanation: When the Federal Reserve sells treasury bills, buyers pay for them and funds move out of the banking system, reducing reserves and the…
Correct answer: selling treasury bills- A. 0.2
- B. 0.13
- C. 0.14
- D. 0.15
Explanation: The discount is $750, or 7.5% of the $10,000 face value. Annualising this 180-day discount yield gives 0.075 × 360/180 = 0.15, so the…
Correct answer: 0.15- A. increase in LIBOR
- B. decrease in LIBOR
- C. increase in KIBOR
- D. decrease in KIBOR
Explanation: Eurodollar demand and LIBOR are positively related because LIBOR reflects the rate at which major banks lend these deposits.
Correct answer: increase in LIBOR- A. liquid markets
- B. money markets
- C. transaction markets
- D. functional markets
Explanation: The Federal Reserve, dealers, mutual funds and the Treasury participate in the money market, where short-term debt instruments and funds…
Correct answer: money markets- A. firstly basis
- B. preferential basis
- C. federal basis
- D. last basis
Explanation: Preferential bidding gives priority to noncompetitive bids before the remaining securities are allocated among competitive bidders.
Correct answer: preferential basis- A. letter of confirmation
- B. letter of transfer
- C. letter of credits
- D. letter of buying
Explanation: An international banker’s acceptance is commonly created when a bank accepts a time draft drawn under a letter of credit.
Correct answer: letter of credits- A. increase information available to investor
- B. ensure the soundness of financial system
- C. create a sound atmosphere
- D. Both A and B
Explanation: Financial-market regulation protects investors by improving the information available to them and protects the economy by maintaining the…
Correct answer: Both A and B- A. US treasury
- B. Australian treasury
- C. Swiss treasury
- D. functional treasury
Explanation: Treasury bills are short-term government securities issued by the U.S. Treasury to raise funds for government financing needs.
Correct answer: US treasury- A. correspondent banks
- B. non-correspondent banks
- C. reciprocal transactions
- D. functional banks
Explanation: Correspondent banks maintain reciprocal accounts and banking arrangements with one another, often to facilitate international payments and…
Correct answer: correspondent banks- A. single payment basis
- B. monthly payment basis
- C. semiannual payment basis
- D. annual payment basis
Explanation: Federal funds are generally very short-term interbank loans, often overnight, that are settled as a single repayment rather than through…
Correct answer: single payment basis- A. federal basis
- B. last basis
- C. firstly basis
- D. preferential basis
Explanation: Non-competitive bidders do not specify a yield or price, so their applications receive preferential allocation at the auction-determined…
Correct answer: preferential basis- A. London intra bank offered rate
- B. London interbank offered rate
- C. Euro interbank offered rate
- D. Demand intra bank rateCompare Business Loans
Explanation: The standard name for the interest rate associated with interbank borrowing in the London market is the London Interbank Offered Rate…
Correct answer: London interbank offered rate- A. competitive bids
- B. non-competitive bids
- C. treasury bids
- D. both A and B
Explanation: Treasury-bill auctions accept both competitive bids, which state the desired yield or price, and non-competitive bids, which accept the…
Correct answer: both A and B- A. treasury trading auction
- B. treasury fund auction
- C. treasury bills auction
- D. treasury bills transferHire An Accountant
Explanation: The formal process through which treasury bills are offered and allocated to investors is called a treasury-bills auction.
Correct answer: treasury bills auction