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1 Finance MCQs

In financial transactions, the risk that there will be no profit in selling an asset is classified as:

  • Price risk
  • Profit risk
  • Selling risk
  • Financial risk
0 Comments
Correct Answer: A. Price risk

Explanation:

Price risk refers to the possibility of losing potential profit or facing losses because of ... Read More Details

2 Finance MCQs

The type of financial security which has a payoff linked to another issued security is classified as:

  • Linked security
  • Derivative security
  • Payable security
  • Non-issuing security
0 Comments
Correct Answer: B. Derivative security

Explanation:

A derivative security is a financial instrument whose value or payoff depends on ... Read More Details

3 Finance MCQs

The examples of derivative securities include:

  • Swap contract
  • Option contract
  • Futures contract
  • All of the above
0 Comments
Correct Answer: D. All of the above

Explanation:

Derivative securities are financial instruments whose value is based on an underlying asset, such as ... Read More Details

4 Finance MCQs

The risk that occurs due to a technology system failure is called:

  • System risk
  • Technology risk
  • Operational risk
  • Support risk
0 Comments
Correct Answer: C. Operational risk

Explanation:

Operational risk refers to the potential loss caused by failures in internal processes, systems, or ... Read More Details

5 Finance MCQs

The legal document required by the Securities Exchange Commission that shows risks and details of an issue is called:

  • Prospectus
  • Stated document
  • Risk detail document
  • Exchange commission document
0 Comments
Correct Answer: A. Prospectus

Explanation:

A prospectus is a formal legal document issued by a company and required by the ... Read More Details

6 Finance MCQs

Additional debt or equity instruments of a publicly traded company are issued in which market?

  • Flow market
  • Primary market
  • Secondary market
  • Funding market
0 Comments
Correct Answer: B. Primary market

Explanation:

The primary market is where companies issue new securities such as shares or bonds for ... Read More Details

7 Finance MCQs

Which of the following are financial instruments of public markets?

  • Transfer funds
  • Bearer bonds
  • Shares
  • Bonds
0 Comments
Correct Answer: C. Shares

Explanation:

Financial instruments of public markets are those that are traded openly and available to the ... Read More Details

8 Finance MCQs

The risk caused by changes in asset prices and exchange rates is called?

  • Asset risk
  • Trade risk
  • Exchange risk
  • Market risk
0 Comments
Correct Answer: D. Market risk

Explanation:

Market risk refers to the possibility of losses due to fluctuations in market factors such ... Read More Details

9 Finance MCQs

Which institutions write securities, provide brokerage services, and trade in securities?

  • Trading institutions
  • Activity institutions
  • Investment banks
  • Mortgage banks
0 Comments
Correct Answer: C. Investment banks

Explanation:

Investment banks specialize in underwriting or writing new securities, helping companies raise capital. They also ... Read More Details

10 Finance MCQs

Which institutions issue securities, handle brokerage, and trade in securities?

  • Trading institutions
  • Activity institutions
  • Investment banks
  • Mortgage banks
0 Comments
Correct Answer: C. Investment banks

Explanation:

Investment banks are financial institutions that help companies and governments raise capital by issuing and ... Read More Details