All Free Management Sciences MCQs with Answers

• A. past terms
• B. future terms
• C. long term
• D. short term

Explanation: Money markets transfer funds for short-term needs, normally involving maturities of one year or less.

• A. derivative security markets
• B. trading markets
• C. classified markets
• D. non-trading markets

Explanation: Derivative security markets are specifically markets for contracts whose value is derived from an underlying asset, such as futures…

• A. trading funds
• B. penalty funds
• C. pension funds
• D. global funds

Explanation: Pension funds collect savings for retirement and commonly receive tax advantages or exemptions to encourage long-term retirement saving.

• A. financial institutions
• B. payable institutions
• C. non-financial institutions
• D. derivative institutions

Explanation: Financial institutions channel funds from savers to borrowers and perform related services such as lending, investing, and payment…

• A. diversification
• B. selling ability
• C. reduction ability
• D. director ability

Explanation: Diversification reduces unsystematic risk by spreading investment across many securities, so poor performance by one security has less…

• A. secondary markets
• B. central market
• C. traded market
• D. agents market

Explanation: A secondary market allows previously issued securities to be traded among investors, often through an organised and centralised…

• A. primary maturity
• B. capital maturity
• C. short term maturity
• D. long term maturity

Explanation: Long-term debt instruments generally show greater price fluctuations because their values are more sensitive to changes in interest rates…

• A. non-financial institutions
• B. derivative institutions
• C. financial institutions
• D. payable institutions

Explanation: Saving banks, insurance companies, mutual funds, and commercial banks all collect, manage, or transfer funds within the financial system…

• A. past counter market
• B. future counter market
• C. over the counter markets
• D. capital counter market

Explanation: An over-the-counter market has no single physical exchange location; transactions are arranged electronically or by telephone through…

• A. flow market
• B. primary markets
• C. secondary markets
• D. funding markets

Explanation: Primary markets are where corporations issue new shares or bonds and receive fresh funds from investors.

• A. government and corporations
• B. liquid corporations
• C. instrumental corporations
• D. manufacturing corporationsHire An Accountant

Explanation: Governments and corporations are the main issuers, or suppliers, of securities traded in capital markets.

• A. selling intermediation
• B. maturity intermediation
• C. direct intermediation
• D. indirect intermediationGet Study Guides

Explanation: Maturity intermediation occurs when a financial institution accepts liabilities with one maturity pattern and invests in assets with…

• A. financial markets
• B. non-financial markets
• C. funds market
• D. flow market

Explanation: Financial markets are organized mechanisms through which funds move between savers and users through instruments such as shares and bonds.

• A. business allocation
• B. sector allocation
• C. economic allocation
• D. credit allocationTry Operations Software

Explanation: Credit allocation refers to directing financing toward particular sectors, such as real estate, agriculture, or industry.

• A. savings in foreign countries
• B. investment opportunities
• C. accessible information
• D. all of the above

Explanation: Foreign financial markets expand when countries offer savings, attractive investment opportunities, and accessible information for…

• A. shorter term markets
• B. capital markets
• C. counter markets
• D. long-term marketsTrack Market Trends

Explanation: Capital markets deal mainly in long-term financing, generally with maturities exceeding one year, including bonds and equity shares.

• A. increased liquidity
• B. decreased liquidity
• C. money flow
• D. large funds

Explanation: Newly issued shares need liquidity so investors can sell them readily after purchase, and this property increases their attractiveness in…

• A. direct transfer
• B. indirect transfer
• C. global transfer
• D. pension transferTake Economics Courses

Explanation: A direct transfer occurs when securities move from the issuing company to investors without a financial intermediary arranging the…

• A. traded offering
• B. public markets
• C. issuance offering
• D. initial public offering

Explanation: An initial public offering, or IPO, is the first sale of a company's shares to the public through a stock exchange.

• A. open position
• B. close position
• C. currency long position
• D. currency short position

Explanation: An unhedged foreign-exchange position is called an open position because it remains exposed to changes in exchange rates.