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.
A market interest rate for specific type of bond is classified as bonds_____________?
A: Required rate of return
B: Required option
C: Required rate of redemption
D: Required rate of earning
Required rate of return
An inflation rate includes in bonds interest rates is one which is inflation rate________?
A: At bond issuance
B: Expected in future
C: Expected at time of maturity
D: Expected at deferred call
Expected in future
An average inflation rate which is expected over life of security is classified as__________?
A: Inflation premium
B: Off season premium
C: Nominal premium
D: Required premium
Inflation premium
Type of bond which pays interest payment only when it earns is classified as__________?
A: Income bond
B: Interest bond
C: Payment bond
D: Earning bond
Income bond
Bonds issued by corporations and exposed to default risk are classified as_________?
A: Corporation bonds
B: Default bonds
C: Risk bonds
D: Zero risk bonds
Corporation bonds
Falling interest rate leads change to bondholder income which is__________?
A: Reduction in income
B: Increment in income
C: Matured income
D: Frequent income
Reduction in income
Bonds that have high liquidity premium are usually have_________?
A: Inflated trading
B: Default free trading
C: Less frequently traded
D: Frequently traded
Less frequently traded
Treasury bonds are exposed to additional risks that are included________?
A: Reinvestment risk
B: Interest rate risk
C: Investment risk
D: Both A and B
Both A and B
Payment divided by par value is classified as______________?
A: Divisible payment
B: Coupon payment
C: Par payment
D: Per period payment
Coupon payment
An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be__________?
A: 5 years
B: 3.5 years
C: 4 years
D: 4.5 years
3.5 years