ECONOMICS OF GLOBAL TRADE AND FINANCE M.COM PART 1

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ECONOMICS OF GLOBAL TRADE AND FINANCE

M.COM [PART 1] ( MCQ PART 2 )

190 + Importance ECONOMICS MCQ PDF

Part 3 Link Click Here

https://www.surajpateleducation.com/2020/12/economics-mcom-part-1-mcq-pdf.html


1. Hedging strategy

a. removes losses

b. helps reduce risk

c. helps make excess profits

d. is independent of risk

Answer b.

 

2. Identify the false statement.

a. Futures contracts trade on a financial exchange.

b. Futures contracts are marked to market.

c. Futures contracts allow fewer delivery options than forward contracts.

d. Futures contracts are more liquid than forward contracts.

Answer: c

 

3. An ______ gives the buyer the right, but not the obligation, to exercise the option at any time before the expiration date

a. European option

b. Asian option

c. American option

d. complex option

 Answer: c.

 

4. A call option with a strike price of $55 can be bought for $4. What will be your net profit if you sell the call and the stock price is $52 when the call expires?

a. 0

b. 3

c. 4

d. -4

Answer: C

 

5. An open position in the options market exists only for

a. long calls

b. long puts

c. short calls and long puts

d. long position and short position in both calls and puts

Answer d.

 

6. An option series refers to a set of option contracts that belong to the same class of options and drawn on  

a. the same underlying asset with different strike prices and the same expiration month

b. the same underlying asset with the same strike price and the same expiration month

c.  different underlying assets with the same strike price and the same expiration month

d. different underlying assets with different

Answer b

 

7. In a Hicksian demand function

a. the level of income is held constant

b. the level of utility is held constant

c. the price level is held constant

d. the level of quantities is held constant

Answer b

 

8. The indirect utility function is strictly increasing in income, non-increasing in prices, quasiconvex and 

a. homogenous of degree zero in prices and income

b. homogenous of degree one in prices and income

c. homogenous of degree two in prices and income

d. is independent of prices and income

Answer a

 

9.  The impact on a consumer’s welfare when a certain some of money is taken away at the original price level which reduces the consumer’s welfare by the same amount is known as

a. Slutsky effect

b. Income effect

c. Equivalent variation

d. Compensating variation

Answer c

 

10. Pareto efficiency is defined as

a. an allocation of goods where each person has received the most equitable portion possible

b. an allocation of goods where, once achieved, no one can be made better off without making someone else worse off

c. an output level of goods that has been produced at the lowest cost possible

d. an allocation of goods that maximizes wealth for all.

Answer b

 

11. The Second theorem of Welfare Economics deals with

a. distribution of initial endowments

b. ownership of initial endowments

c. production of initial endowments

d. consumption of initial endowments

Answer a

 

12. The stability of general equilibrium requires that the total value of excess demands for any given price is

a. positive

b. zero

c. negative

d. can be positive or negative

Answer b.

 

13.Which one of the following is closely related to ANOVA ?

a. t test

b. z test

c. Fisher analysis of variance

d.correlation technique

Ans: c  

 

14. Piolet survey is useful for

a. finalising the sample size

b. removing type 1 error

c. removing type 2 error

d. to finalise the questionnaire

Ans: d

 

15.A Pulmonary specialist collected data on corona infection severity in four cities. In order to evaluate the difference in infection severity, in four cities, which of the following technique can be used?

a. Two-way ANOVA

b. Coefficient of variation

c. One-way ANOVA

d. Regression

Ans: c

 

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16.Which one of the following countries data enables you to calculate the standardised rates?

a. Ireland

b.Japan

c .India

d. China

Ans: b

 

17. Among the major Indian states, the most urbanized state is:

a) Maharashtra 

b) Kerala 

c) Tamil Nadu 

d) Himachal Pradesh

ANS. C

 

18 Which is the apex bank of agriculture?

a) NABARD 

b) Rural Banks  

c) Cooperative societies   

d) State Government

ANS. A

 

 

19. Bermudan options can only be exercised at maturity

a. only at maturity

b. at any time during the life of the option

c. at the mid-point during the life of the option

d. at any of the specified dates during the life of the option 

Answer d.

 

20. According to the Black-Scholes option pricing model: 

a. the option price does not depend on the risk-free interest rate

b. the most difficult parameter to estimate is the risk-free interest rate

c. the option price does not depend on the expected return of the underlying stock

d. an at-the-money call is worth the same as an at-the-money put

Answer d.

 

21. In the Black and Scholes option pricing formula, an increase in a stock's volatility:

a. Increases the associated call option value

b. Decreases the associated put option value

c. Increases or decreases the option value, depending on the level of interest rates

d. Does not change either the put or call option value because put-call parity holds

Answer: a.

 

22. Mr. A. owns 200 shares of Company X. However, he is uncomfortable with the current price movements and he can hedge his position by

a. Buying one futures contract of Company X

b. Buying two futures contract of Company X

c. Selling one futures contract of company X

d. Selling two futures contract of company X

Answer d.

 

23 The rate of change of the option price with reference to the price of the underlying asset is

a. Theta

b. Rho

c. Delta

d. Gamma

Answer c.

24. The combination of buying a call and a put option at the different exercise prices then it would be a

a. Straddle

b. Strangle

c. hedge

d. Bull Spread

Answer b.

 

25. The option price ceteris paribus will be ________ related to the amount of time that the option has to run before expiry.

a. positively

b. negatively 

c. positively and negatively

d. independent   

Answer a


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 M.Com Part 1 Other Subject MCQ 

Strategic Management

1)    https://www.surajpateleducation.com/2021/04/strategic-management-mcq-pdf.html

2)    https://www.surajpateleducation.com/2021/01/strategic-management-mcom-part-1.html

3)    https://www.surajpateleducation.com/2020/11/strategic-management-mcom-part-1-mcq-pdf.html

 

Advance Cost

1)    https://www.surajpateleducation.com/2021/03/mcom-part-1-advance-cost-accounting-mcq.html

2)    https://www.surajpateleducation.com/2020/11/advanced-cost-accounting-mcom-paer-1_28.html

3)    https://www.surajpateleducation.com/2020/11/advanced-cost-accounting-mcom-paer-1.html

 

ECONOMICS OF GLOBAL TRADE & FINANCE

1)    https://www.surajpateleducation.com/2021/01/economics-of-global-trade-finance-mcq.html

2)    https://www.surajpateleducation.com/2021/01/economics-of-global-trade-finance-mcom.html

3)    https://www.surajpateleducation.com/2020/12/economics-mcq-mcom-mumbai-university.html

4)    https://www.surajpateleducation.com/2020/12/economics-mcom-part-1-mcq-pdf.html

 

Human Resource Management

1)    https://www.surajpateleducation.com/2021/01/human-resource-management-multiple.html

2)    https://www.surajpateleducation.com/2020/11/human-resource-management-mcom-part-1_25.html

3)    https://www.surajpateleducation.com/2020/11/human-resource-management-mcom-part-1.html

 

Marketing Strategies

1)    https://www.surajpateleducation.com/2020/11/marketing-strategies-and-plans-mcom.html

2)    https://www.surajpateleducation.com/2020/11/marketing-strategies-and-plans-mcq-mcom.html

 

Advanced financial

https://www.surajpateleducation.com/2020/11/advanced-financial-accounting-mcom-part_27.html

 

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