M C Q s D r i v e

Management Sciences 5308 MCQs [All-Courses]

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Management Sciences focuses on the planning, organizing, leading, and controlling of resources to achieve organizational goals.This subject is highly important for competitive exams, academic study, and professional careers in the business and public sectors.

Consider the call option writing, the probability that a buyer would have positive payoff increases with the ___________?
A increase in stock price
B decrease in stock price
C increase in maturity duration
D decrease in maturity duration
Correct Answer: decrease in stock price
When the price of underlying asset increases then the good option is __________?
A buy the call option
B sell the call option
C buy the put option
D sell the put option
Correct Answer: buy the call option
In interest rate swap transaction, the party who pays the floating payments of interest is considered as __________?
A notion buyer
B notion seller
C swap buyer
D swap seller
Correct Answer: swap seller
The situation in which the large portion of majority is borrowed from the broker of investor is classified as ___________?
A future investment
B forward investment
C leveraged investment
D non-leveraged investment
Correct Answer: leveraged investment
The type of swaps in which the fixed payments of interest are exchanged by two counterparties for floating payments of interest are called _________?
A float-fixed swaps
B interest rate swaps
C indexed swaps
D counter party swaps
Correct Answer: interest rate swaps
The inverse relationship between price change and interest rate change is represented by ___________?
A negative discount
B negative duration
C positive duration
D positive discount
Correct Answer: negative duration
The direct relationship between price change and interest rate change is represented by __________?
A positive duration
B positive discount
C negative discount
D negative duration
Correct Answer: negative duration
In zero coupon bonds, the increase in duration with respect to maturity must be at ___________?
A decreasing rate
B increasing rate
C alarming rate
D inelastic rate
Correct Answer: decreasing rate
The type of bond for which the bonds present value is greater than bonds face value is classified as ____________?
A coupon bond
B interest bonds
C discount bond
D premium bond
Correct Answer: premium bond
The interest rate that investors receive on financial security to calculate fair value of security is classified as ___________?
A forward rate of return
B unturned rate of return
C required rate of return
D termed rate of return
Correct Answer: required rate of return