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 6 of 16

Q51.
If the risk of financial security increases and the supply curve shifts to the left then the impact on equilibrium of interest rate must
Discuss
Answer: (b).increases
Q52.
The larger fluctuations in portfolio value of foreign exchange of financial institutions leads to
Discuss
Answer: (b).greater volatility of rates
Q53.
The services such as commercial trade transactions and positions in financial investments provided by financial institutions are classified as
Discuss
Answer: (c).agent services
Q54.
For a foreign exchange of specific currency, the non-hedged position is classified as
Discuss
Answer: (a).open position
Q55.
The position which came in to existence because of holding assets less than liabilities is considered as
Discuss
Answer: (d).net short in currency
Q56.
The theory according to which the difference between expected appreciation and foreign interest must be equal to domestic interest rate, is called
Discuss
Answer: (a).interest rate parity theorem
Q57.
The rule which states that similar set of goods and services produced in various countries should have equal price is classified as
Discuss
Answer: (d).law of one price
Q58.
The reasons for smaller exposure of foreign exchange than US money center are
Discuss
Answer: (d).all of the above
Q59.
In equilibrium position, the spread between foreign and domestic rate of interest must be equal to spread of
Discuss
Answer: (b).forward and spot exchange rates
Discuss
Answer: (a).largest foreign exchange trading
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