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1 Finance MCQs

If the marginal income tax rate is 28% and the before-tax rate of return is 14.5%, the after-tax rate of return is ____________?

  • 0.0744
  • 0.0844
  • 0.0944
  • 0.1044
0 Comments
Correct Answer: D. 0.1044

Explanation:

Use the formula: After-tax return = Before-tax return × (1 − tax rate).
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2 Finance MCQs

A financial guarantee ensures that the lender will be paid ____________?

  • Principal and interest
  • Debt and cash
  • Capital and profit
  • Cash and interest
0 Comments
Correct Answer: A. Principal and interest

Explanation:

A financial guarantee is a promise by a guarantor to cover the borrower’s obligation if ... Read More Details

3 Finance MCQs

An issuance of securities where the investment bank does not guarantee a price but acts as a distributor is called ____________?

  • Best efforts offering
  • Least good index
  • Least good premium
  • Least good discount price
0 Comments
Correct Answer: A. Best efforts offering

Explanation:

In a best efforts offering, the investment bank does not guarantee the issuer a specific ... Read More Details

4 Finance MCQs

Conversion value divided by the conversion rate is used to calculate ____________?

  • Current market price
  • Past market price
  • Future market value
  • Current stock value
0 Comments
Correct Answer: D. Current stock value

Explanation:

When the conversion value of a convertible security is divided by the conversion rate, the ... Read More Details

5 Finance MCQs

Treasury securities are exempted from ____________?

  • Federal taxes
  • Local and state taxes
  • Federal discounts
  • Deferral premium
0 Comments
Correct Answer: B. Local and state taxes

Explanation:

Treasury securities, such as Treasury bills, notes, and bonds, are subject to federal income tax ... Read More Details

6 Finance MCQs

In firm commitment underwriting, the securities are sold to investors at a relatively ____________ price?

  • Higher price
  • Lower price
  • Indexed price
  • Commercial price
0 Comments
Correct Answer: B. Lower price

Explanation:

In firm commitment underwriting, the underwriter buys all the securities from the issuer and then ... Read More Details

7 Finance MCQs

A bond denominated in US dollars and issued in European financial markets is called ____________?

  • Australian bonds
  • Eurobonds
  • Interbank bonds
  • Interbank bonds
0 Comments
Correct Answer: B. Eurobonds

Explanation:

A Eurobond is an international bond issued in a currency different from the ... Read More Details

8 Finance MCQs

Eurobonds are typically issued in what denominations?

  • $10,000 and $20,000
  • $5,000 and $10,000
  • $6,000 and $11,000
  • $8,000 and $15,000
0 Comments
Correct Answer: B. $5,000 and $10,000

Explanation:

Eurobonds are international bonds issued in a currency different from the issuing country’s local currency. ... Read More Details

9 Finance MCQs

Private placements of securities are considered ____________?

  • Registered issue
  • Unregistered issue
  • Federal issue
  • Negotiable issue
0 Comments
Correct Answer: B. Unregistered issue

Explanation:

A private placement is the sale of securities directly to a select group of investors ... Read More Details

10 Finance MCQs

In which year were Eurobonds first issued in financial markets?

  • 1963
  • 1953
  • 1983
  • 1962
0 Comments
Correct Answer: A. 1963

Explanation:

Eurobonds are international bonds issued in a currency different from the country where they are ... Read More Details