Management Sciences MCQs
These Management Sciences MCQs are for public service commission exams and BBA, and MBA students to prepare for their examinations. All MCQs are prepared after having a look at past papers of public service commission examinations held from time to time. These Management Science questions are very important for all types of tests conducted by FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, STS, ETEA, and other testing agencies of Pakistan.
An increasing in interest rate leads to decline in value of__________?
A: Junk bonds
B: Outstanding bonds
C: Standing bonds
D: Premium bonds
Outstanding bonds
Coupon rate of bond is also called____________?
A: Nominal rate
B: Premium rate
C: Quoted rate
D: Both a and c
Both a and c
Value generally promises to pay at maturity date and a firm borrows is considered as bonds__________?
A: Bond value
B: Per value
C: State value
D: Par value
Par value
Reinvestment risk of bonds is usually higher on______?
A: Income bonds
B: Callable bonds
C: Premium bonds
D: Default free bonds
Callable bonds
Market in which bonds are traded over-the-counter than in an organized exchange is classified as__________?
A: Organized markets
B: Trade markets
C: Counter markets
D: Bond markets
Bond markets
Coupon payment of bond which is fixed at time of issuance____________?
A: Remains same
B: Becomes stable
C: Becomes change
D: Becomes low
Remains same
Coupon payment is calculated with help of interest rate, then this rate considers as________?
A: Payment interest
B: Par interest
C: Coupon interest
D: Yearly interest rate
Coupon interest
An effect of interest rate risk and investment risk on a bonds yield is classified as_________?
A: Reinvestment premium
B: Investment risk premium
C: Maturity risk premium
D: Defaulters premium
Maturity risk premium
Yield of interest rate which is below than coupon rate, this yield is classified as_________?
A: Yield to maturity
B: Yield to call
C: Yield to earning
D: Yield to investors
Yield to call
If market interest rate falls below coupon rate then bond will be sold__________?
A: Below its par value
B: Above its par value
C: Equal to return rate
D: Seasoned price
Above its par value