

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.
Rate of return (in percentages) consists of___________?
A: Capital gain yield interest yield
B: Return yield + stable yield
C: Return yield + unstable yield
D: Par value + market value
Capital gain yield interest yield
Type of bonds that are issued by foreign governments or foreign corporations are classified as__________?
A: Zero risk bonds
B: Zero bonds
C: Foreign bonds
D: Government bonds
Foreign bonds
If market interest rate rises above coupon rate, then bond will be sold_____________?
A: Equal to return rate
B: Seasoned price
C: Below its par value
D: Above its par value
Below its par value
An interest rate which is used in calculation of cash flows of bonds is called______________?
A: Required rate of redemption
B: Required rate of earning
C: Required rate of return
D: Required option
Required rate of return
Type of options that permit bond holder to buy stocks at stated price are classified as______?
A: Provision
B: Guarantee
C: Warrants
D: Convertibles
Warrants
Bond that has been issued in very recent timing is classified as_______?
A: Mature issue
B: Earning issue
C: New issue
D: Recent issue
New issue
Bonds issued by local and state governments with default risk are____________?
A: Municipal bonds
B: Corporation bonds
C: Default bonds
D: Zero bonds
Municipal bonds
Maturity date decides at time of issuance of bond and legally permissible is classified as____________?
A: Original maturity
B: Permanent maturity
C: Artificial maturity
D: Valued maturity
Original maturity
Bonds that can be converted into shares of common stock are classified as_________?
A: Convertible bonds
B: Stock bonds
C: Shared bonds
D: Common bonds
Convertible bonds
Price of an outstanding bond increases when market rate___________?
A: Never changes
B: Increases
C: Decreases
D: Earned
Decreases
