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International Finance and Treasury MCQ Questions and Solutions with Explanations | Management

International Finance and Treasury MCQ Questions and answers with easy and logical explanations. Management provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. International FinanceMCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management department exam. Page-6 section-6

Each section contains 100 MCQs on International Finance and Treasury .
51
Type of trading member who takes position every day and also liquidate it on same day is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Type of trading member who takes position every day and also liquidate it on same day is classified as day traders. A day trader is a trader who executes a large volume of short and long trades to capitalize on intraday market price action.
52
Contract which gives rights to holders to sell or buy asset at specific time period rather than giving obligation is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Contract which gives rights to holders to sell or buy asset at specific time period rather than giving obligation is classified as option. An options contract is an agreement between a buyer and seller that gives the purchaser of the option the right to buy or sell a particular asset at a later date at an agreed upon price. Options contracts are often used in securities, commodities, and real estate transactions.
53
Type of exchange members who place buying and selling from public are classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Type of exchange members who place buying and selling from public are classified as floor broker. A floor broker (FB) is an independent member of an exchange who is authorized to execute trades on the exchange floor on behalf of clients. A floor broker is a middleman who acts as an agent for clients, indirectly giving them the best access possible to the exchange floor.
54
If exercise price of an option is $360 and intrinsic value of an option is $160 then price of an underlying asset is
Discuss
Answer & Solution
Answer: Option A
Solution:
Price of an underlying asset = Exercise price of an option - Intrinsic value of an option
= $360 - $160 = $200.
55
Time period between issuance of shares and filing of registration to Securities Exchange Commission is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Time period between issuance of shares and filing of registration to Securities Exchange Commission is classified as quiet period. The time period principle is the concept that a business should report the financial results of its activities over a standard time period, which is usually monthly, quarterly, or annually.
56
Composite value of traded stocks group of secondary markets is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Composite value of traded stocks group of secondary markets is classified as stock market index. A stock index or stock market index is a measurement of a section of the stock market.
57
Type of option that gives right to buyer to buy underlying option at specific exercise price is considered as
Discuss
Answer & Solution
Answer: Option C
Solution:
Type of option that gives right to buyer to buy underlying option at specific exercise price is considered as call option. Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period.
58
Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Type of preferred stock in which dividend does not increase or decrease with increase or decrease in profit of firm is classified as non-participating preferred stock. Non-participating preferred stock is preferred stock that specifically limits the amount of dividends paid to its holders.
59
Put option considering interest rates and have multiple exercise dates is classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Put option considering interest rates and have multiple exercise dates is classified as floor. Floors set a minimum interest rate payment because if interest rates fall below the strike rate the floor holder is protected; payments are calculated the same as caps.
60
Agreement between two parties to exchange cash flows in future and cash flows are based on underlying instruments is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Agreement between two parties to exchange cash flows in future and cash flows are based on underlying instruments is classified as swaps. A swap is a derivative contract through which two parties exchange the cash flows or liabilities from two different financial instruments.