Financial Markets and Funds MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Financial Markets and Funds, a fundamental topic in the field of Financial Management and Financial Markets. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Financial Markets and Funds MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Financial Markets and Funds mcq questions that explore various aspects of Financial Markets and Funds problems. Each MCQ is crafted to challenge your understanding of Financial Markets and Funds principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Financial Management and Financial Markets tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Financial Markets and Funds MCQs are your pathway to success in mastering this essential Financial Management and Financial Markets topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Financial Markets and Funds. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Financial Markets and Funds knowledge to the test? Let's get started with our carefully curated MCQs!

Financial Markets and Funds MCQs | Page 3 of 16

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Q21.
According to loanable funds theory, the fall in interest rates result into
Discuss
Answer: (c).higher demand of funds
Q22.
If the equilibrium interest rate decreases and the curve of funding supplied shifts to the right and downwards, then the impact on spending will
Discuss
Answer: (b).decrease in near term
Q23.
The value which converts series of equal payments in to the value received at end time of investment is classified as
Discuss
Answer: (b).future value of annuity
Q24.
The theory which states that interest equilibrium is the result of demand and supply in trading markets, is classified as
Discuss
Answer: (d).loanable funds theory
Q25.
The decrease in present value at decreasing rate only, when there is
Discuss
Answer: (d).increase in interest rate
Discuss
Answer: (a).short term working capital
Q27.
The expected rate that originates at any point in future for a specific security is classified as
Discuss
Answer: (a).forward rate
Q28.
The earned interest rate which is reinvested in other investment is classified as
Discuss
Answer: (a).compound interest
Q29.
If the risk of financial security decreases and the supply curve shifts to the right and downwards then the impact on equilibrium of interest rate must
Discuss
Answer: (c).decreases
Q30.
The liquidity premium theory, unbiased expectations theory and market segmentation theory are the theories to describe
Discuss
Answer: (b).term structure of interest rate