The relationship between maturity and interest rates is known as ________ A. Yield Curve B. Zero Coupon Yield Curve C. Negative Yield Curve D. Neutral Yield Curve E. None of the Above

The relationship between maturity and interest rates is known as ________ A. Yield Curve B. Zero Coupon Yield Curve C. Negative Yield Curve D. Neutral Yield Curve E. None of the Above
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 B. Zero Coupon Yield Curve Explanation: The Zero Coupon Yield Curve aka the Spot Curve is a relationship between maturity and interest rates which differs from a normal yield curve
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The relationship between time and yield on a homogenous risk class of securities is called ________ A. Yield Curve B. Zero Coupon Yield Curve C. Spot Curve D. Both (A) and (B) E. None of the Above

Description : The relationship between time and yield on a homogenous risk class of securities is called ________ A. Yield Curve B. Zero Coupon Yield Curve C. Spot Curve D. Both (A) and (B) E. None of the Above

Last Answer : A. Yield Curve Explanation: The relationship between time and yield on a homogeneous risk class of securities is called the Yield Curve.

Which of the following is not a feature of bonds ? (A) Par value (B) Yield to maturity (C) Coupon rate (D) Maturity

Description : Which of the following is not a feature of bonds ? (A) Par value (B) Yield to maturity (C) Coupon rate (D) Maturity

Last Answer : Answer: Yield to maturity

The collar of a floating-rate bond refers to the minimum and maximum ______. a) call periods b) maturity dates c) coupon rates d) yields to maturity

Description : The collar of a floating-rate bond refers to the minimum and maximum ______. a) call periods b) maturity dates c) coupon rates d) yields to maturity

Last Answer : c) coupon rates

If interest rates are expected to increase, the coupon payment structure most likely to benefit the issuer is a ______. a) step-up coupon b) inflation-linked coupon c) put option d) cap in a floating-rate note

Description : If interest rates are expected to increase, the coupon payment structure most likely to benefit the issuer is a ______. a) step-up coupon b) inflation-linked coupon c) put option d) cap in a floating-rate note

Last Answer : d) cap in a floating-rate note

If the population growth follows a logistic curve, the maximum sustainable yield: (A) is equal to half the carrying capacity. (B) is equal to the carrying capacity. (C) depends on growth rates. (D) depends on the initial population.

Description : If the population growth follows a logistic curve, the maximum sustainable yield: (A) is equal to half the carrying capacity. (B) is equal to the carrying capacity. (C) depends on growth rates. (D) depends on the initial population.

Last Answer : (A) is equal to half the carrying capacity.

Bond face value-$100, time to maturity - 5 years, coupon rate 5% redeemed at face value, what will be the ytm?

Description : Bond face value-$100, time to maturity - 5 years, coupon rate 5% redeemed at face value, what will be the ytm?

Last Answer : The yield to maturity will be 5% since both Face Value and Redemption value are same. If you purchase the bond for 95 or 105 your yield to maturity will change than what the coupon rate is.

Which of the following bonds has the shortest duration? a) A bond with 20-year maturity, 10% coupon rate b) A bond with 20-year maturity, 6% coupon rate c) A bond with 10-year maturity, 6% coupon rate d) A bond with 10-year maturity, 10% coupon rate

Description : Which of the following bonds has the shortest duration? a) A bond with 20-year maturity, 10% coupon rate b) A bond with 20-year maturity, 6% coupon rate c) A bond with 10-year maturity, 6% coupon rate d) A bond with 10-year maturity, 10% coupon rate

Last Answer : All else constant, a bond with a longer maturity will be more sensitive to changes in interest rates. All else constant, a bond with a lower coupon will have greater interest rate risk. The correct answer was D) 10-year maturity, 10 percent coupon rate.

Time period that is considered from the inception of the credit, investment or negotiable instrument and ends upon the maturity or expiry of the instrument is referred as ________ A. Amortisation Period B. Amortising Swap C. Asset Backed Security D. Attrition Analysis

Description : Time period that is considered from the inception of the credit, investment or negotiable instrument and ends upon the maturity or expiry of the instrument is referred as ________ A. Amortisation Period B. Amortising Swap C. Asset Backed Security D. Attrition Analysis

Last Answer : A. Amortisation Period Explanation: The amortisation period on a mortgage is the total length of time it will take you to pay off your mortgage.

The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth is known as: A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy

Description : The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic ... A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy

Last Answer : B. Monetary Policy Explanation: Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.

Consider the following salient points in a stress-strain curve of a mild steel bar: 1. Yield point 2. Braking point 3. Yield plateau 4 . Proportionality limit 5. Ultimate point The correct sequence in which they occur while testing the mild steel bar in tension from initial zero strain to failure is (a) 4, 1, 2, 3 and 5 (b) 1, 4, 3, 5 and 2 (c) 4, 1, 3, 5 and 2 (d) 1, 4, 2, 3 and 5

Description : Consider the following salient points in a stress-strain curve of a mild steel bar: 1. Yield point 2. Braking point 3. Yield plateau 4 . Proportionality limit 5. Ultimate point The correct sequence in which they occur while testing the mild ... , 5 and 2 (c) 4, 1, 3, 5 and 2 (d) 1, 4, 2, 3 and 5

Last Answer : (c) 4, 1, 3, 5 and 2

Which curve shows the inverse relationship between unemployment and inflation rates? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve

Description : Which curve shows the inverse relationship between unemployment and inflation rates? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve

Last Answer : (4) Phillips curve Explanation: The Phillips curve shows the inverse relationship between inflation and unemployment: as unemployment decreases, inflation increases. The relationship, however, is not linear. Graphically, ... unemployment rate is on the x-axis and the inflation rate is on the y-axis.

Which curve shows the inverse relationship between unemployment and inflation rates ? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve

Description : Which curve shows the inverse relationship between unemployment and inflation rates ? (1) Supply curve (2) Indifference curve (3) IS curve (4) Phillips curve

Last Answer :  Phillips curve 

Does Bond Valuation use Yield to Maturity or Expected Rate or Return?

Description : Does Bond Valuation use Yield to Maturity or Expected Rate or Return?

Last Answer : answer:I don't have my formulas at hand to calculate it, but if the interest rate has gone down since the bonds were bought, and you sell them now, you will lose money, your rate of return ... $1000) and a stream of coupons at 7%, but the increase in interest rates will reduce the current price.

Hybrid vigor in vegetables is manifested by a. High yield b. Uniformity in size c. Uniformity in maturity d. All of above

Description : Hybrid vigor in vegetables is manifested by a. High yield b. Uniformity in size c. Uniformity in maturity d. All of above

Last Answer : All of above

An index that is used to determine interest rates and/or changes of interest rates of certain types of loans is known as _________ A. Covenant B. CRAR C. COFI D. CRAs

Description : An index that is used to determine interest rates and/or changes of interest rates of certain types of loans is known as _________ A. Covenant B. CRAR C. COFI D. CRAs

Last Answer : C. COFI Explanation: A cost of funds index or COFI is a regional average of interest expenses incurred by financial institutions, which in turn is used as a base for calculating variable rate loans.

Could someone explain very simply what negative interest rates are?

Description : Could someone explain very simply what negative interest rates are?

Last Answer : answer:Normally, when you have a savings account, interest causes your balance to increase over time. Negative interest means your balance decreases. So, negative interest applied to normal people means that ... to borrow money. Of course, that would never be applied to normal people taking loans.

Which digital data encoding method records a digital one as a positive pulse and a digital (zero) as a negative pulse and returns the tape to neutral between pulses?

Description : Which digital data encoding method records a digital one as a positive pulse and a digital (zero) as a negative pulse and returns the tape to neutral between pulses?

Last Answer : Return-to-zero (RZ) encoding.

Mark the correct option a) After maturity , the senior citizen account will be extended further 3 year b) The account continued after maturity, the deposit shall earn interest at the rate applicable to the new account opened. c) In case the account not extended on maturity and closed at any time the saving bank interest applicable d) There is no maximum time limit for PMI e) All the above

Description : Mark the correct option a) After maturity , the senior citizen account will be extended further 3 year b) The account continued after maturity, the deposit shall earn interest at the rate applicable to the ... bank interest applicable d) There is no maximum time limit for PMI e) All the above

Last Answer : e) All the above

Mark the correct option a) The MIS account can be close after expiry of one year. b) The MIS account closed after one year but before three year 2 % deduction will be made on initial deposit c) The MIS account closed after expiry of three year 1% deduction will be made . on the initial deposit d) In case of death of the depositor before maturity account may be closed and deposit refunded along with interest up to the month preceding the month in which refund made. e) All the above

Description : Mark the correct option a) The MIS account can be close after expiry of one year. b) The MIS account closed after one year but before three year 2 % deduction will be made on initial deposit ... along with interest up to the month preceding the month in which refund made. e) All the above

Last Answer : e) All the above

What is/are the characteristics of „Hot Money‟? A. The term is used for fresh currency notes issued by RBI B. It is the fund which inflows in the market to take advantage of high interest rates C. It is the fund which is thrown in the market to create imbalance in the stock markets D. All of the Above E. None of the Above

Description : What is/are the characteristics of Hot Money ? A. The term is used for fresh currency notes issued by RBI B. It is the fund which inflows in the market to take advantage of high interest rates C. It ... in the market to create imbalance in the stock markets D. All of the Above E. None of the Above

Last Answer : B. It is the fund which inflows in the market to take advantage of high interest rates Explanation: Hot money is currency that moves regularly, and quickly, between financial markets so investors ensure they are getting the highest short-term interest rates available.

Sub-prime lending refers to ________ A. lending done by banks at rates below PLR B. Funds raised by the banks at sub-libor rates C. Group of banks which are not rated as prime banks as per Banker‘s Almanac D. lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards E. All of the Above

Description : Sub-prime lending refers to ________ A. lending done by banks at rates below PLR B. Funds raised by the banks at sub-libor rates C. Group of banks which are not rated as ... institutions including banks to customers not meeting with normally required credit appraisal standards E. All of the Above

Last Answer : D. lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards Explanation: In finance, subprime lending (also referred to ... schedule, sometimes reflecting setbacks, such as unemployment, divorce, medical emergencies, etc.

What is the value of Three-Year 4.25% Annual Coupon Bond Puttable at Par one year from now if one year forward rates at T (0), T (1) and T (2) are 2.50%, 3% and 4.5% respectively? a) 101.54 b) 101.71 c) 102.67 d) 102.89

Description : What is the value of Three-Year 4.25% Annual Coupon Bond Puttable at Par one year from now if one year forward rates at T (0), T (1) and T (2) are 2.50%, 3% and 4.5% respectively? a) 101.54 b) 101.71 c) 102.67 d) 102.89

Last Answer : c) 102.67

Post maturity interest shall be allowed up to ____ a) 2 years from the date of maturity b) 1 years from the date of maturity c) 3 years from the date of maturity d) Not allowed

Description : Post maturity interest shall be allowed up to ____ a) 2 years from the date of maturity b) 1 years from the date of maturity c) 3 years from the date of maturity d) Not allowed

Last Answer : d) Not allowed

Post maturity interest on TD account shall be paid up to a) 1 Year b) 2 Years c) 3 Years d) No limit

Description : Post maturity interest on TD account shall be paid up to a) 1 Year b) 2 Years c) 3 Years d) No limit

Last Answer : b) 2 Years

Mark the correct option MIS account opened on or after 01 Apr 12 a) The rate of interest shall be 8.5 % per annum payable monthly. b) No withdrawal will be allowed before expiry of maturity period 5 years c) No bonus shall be payable d) All the above

Description : Mark the correct option MIS account opened on or after 01 Apr 12 a) The rate of interest shall be 8.5 % per annum payable monthly. b) No withdrawal will be allowed before expiry of maturity period 5 years c) No bonus shall be payable d) All the above

Last Answer : d) All the above

Post maturity interest on TD account shall be paid up to a) 1 Year b) 2 Years c) 3 Years d) No limit

Description : Post maturity interest on TD account shall be paid up to a) 1 Year b) 2 Years c) 3 Years d) No limit

Last Answer : b) 2 Years

The amount of maturity inclusive of interest if becomes Rs 20000/- or above shall be paid by a) Cash only b) By crossed cheque c) By Credit into saving accounts d) Either B or C

Description : The amount of maturity inclusive of interest if becomes Rs 20000/- or above shall be paid by a) Cash only b) By crossed cheque c) By Credit into saving accounts d) Either B or C

Last Answer : d) Either B or C

Post maturity interest on RD account after extended maturity period shall be paid up to a) 1 Year b) 2 Years c) 3 Years d) No limit

Description : Post maturity interest on RD account after extended maturity period shall be paid up to a) 1 Year b) 2 Years c) 3 Years d) No limit

Last Answer : d) No limit

In case of maturity value of discontinued RD account is retained after the date of maturity the depositor shall be entitled ______ of interest wef 01 Jan 2012 a) 3.5% b) 4% c) 8% d) 9.25%

Description : In case of maturity value of discontinued RD account is retained after the date of maturity the depositor shall be entitled ______ of interest wef 01 Jan 2012 a) 3.5% b) 4% c) 8% d) 9.25%

Last Answer : b) 4%

The maturity value on Rs 10 denomination of RD account opened on or after 01 Dec 2011 and up to 31 Mar 12 and 01 Apr 12 is(Interest @8.4%) a) 728.29 b) 738.62, 747 c) 738.51 d) 738.10

Description : The maturity value on Rs 10 denomination of RD account opened on or after 01 Dec 2011 and up to 31 Mar 12 and 01 Apr 12 is(Interest @8.4%) a) 728.29 b) 738.62, 747 c) 738.51 d) 738.10

Last Answer : b) 738.62, 747

In the event of policy holder committing suicide a) The full maturity benefit will be paid b) No claim will be entertained in suicide cases c) Within two year from the date of policy, the policy will be treated as void and no claim will be entertained d) The premium will be returned a/w SB interest

Description : In the event of policy holder committing suicide a) The full maturity benefit will be paid b) No claim will be entertained in suicide cases c) Within two year from the date of policy, the policy ... treated as void and no claim will be entertained d) The premium will be returned a/w SB interest

Last Answer : c) Within two year from the date of policy, the policy will be treated as void and no claim will be entertained

A perpetual bond does not have a fixed _________. a) interest rate b) maturity period c) duration d) underlying asset

Description : A perpetual bond does not have a fixed _________. a) interest rate b) maturity period c) duration d) underlying asset

Last Answer : b) maturity period

When the Demand curve of a pure monopoly firm is elastic, MR will be (a) Negative ; (b) Positive ; (c) Zero ; (d) Any of these

Description : When the Demand curve of a pure monopoly firm is elastic, MR will be (a) Negative ; (b) Positive ; (c) Zero ; (d) Any of these

Last Answer : (b) Positive ;

A non performing Asset in Banking Business means ________ A. A fixed asset of Bank is not been utilized B. A portion of deposits not been utilized C. A loan asset on which interest and/or instalments remain unchanged. D. All of the Above E. None of the Above

Description : A non performing Asset in Banking Business means ________ A. A fixed asset of Bank is not been utilized B. A portion of deposits not been utilized C. A loan asset on which interest and/or instalments remain unchanged. D. All of the Above E. None of the Above

Last Answer : C. A loan asset on which interest and/or instalments remain unchanged. Explanation: A nonperforming asset (NPA) refers to a classification for loans on the books of financial institutions that are in ... is classified as nonperforming when loan payments have not been made for a period of 90 days.

A long-term security yielding a fixed rate of interest, issued by a company is called ________ A. Shares B. Debentures C. Bonds D. Both (A) and (C) E. None of the Above

Description : A long-term security yielding a fixed rate of interest, issued by a company is called ________ A. Shares B. Debentures C. Bonds D. Both (A) and (C) E. None of the Above

Last Answer : B. Debentures Explanation: A debenture is a type of debt instrument that is not secured by physical assets or collateral. Instruments issued by companies are called debentures. The difference between the two is actually a function of where they are registered and pay stamp duty and how they trade.

Pick up the correct statement from the following: (A) In a loaded beam, the moment at which the first yield occurs is called yield moment(B) In a loaded beam, the moment at which the entire section of the beam becomes fully plastic, is called plastic moment (C) In a fully plastic stage of the beam, the neutral axis divides the section in two sections of equal area (D) All the above

Description : Pick up the correct statement from the following:  (A) In a loaded beam, the moment at which the first yield occurs is called yield moment (B) In a loaded beam, the moment at which the ... beam, the neutral axis divides the section in two sections of  equal area  (D) All the above 

Last Answer : (D) All the above 

The yield moment of a cross section is defined as the moment that will just produce the yield stress in (A) The outer most fibre of the section (B) The inner most fibre of the section (C) The neutral fibre of the section (D) The fibre everywhere

Description : The yield moment of a cross section is defined as the moment that will just produce the yield  stress in  (A) The outer most fibre of the section  (B) The inner most fibre of the section  (C) The neutral fibre of the section  (D) The fibre everywhere 

Last Answer : (A) The outer most fibre of the section 

What bank has the best rates for high yield cds?

Description : What bank has the best rates for high yield cds?

Last Answer : ING offers the highes yield CD rates right now. These are available nationwide.

What is the maturity period for senior citizen savings scheme? A. 3 years B. 5 years C. 2 years D. 5 years E. 4 years

Description : What is the maturity period for senior citizen savings scheme? A. 3 years B. 5 years C. 2 years D. 5 years E. 4 years

Last Answer : B. 5 years Explanation: There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding INR 15 lakh in senior citizen savings scheme. Maturity period is 5 years.

What is the minimum maturity period for Rupee Denominated Bonds? A. 2 years B. 3 years C. 4 years D. 5 years E. None of the Above

Description : What is the minimum maturity period for Rupee Denominated Bonds? A. 2 years B. 3 years C. 4 years D. 5 years E. None of the Above

Last Answer : B. 3 years Explanation: The Rupee denominated bonds can only be issued in a country and can only be subscribed by a resident of a country with minimum maturity period of 3 years.

Pick up the correct statement from the following: (A) The bending stress in a section is zero at its neutral axis and maximum at the outer fibres (B) The shear stress is zero at the outer fibres and maximum at the neutral axis (C) The bending stress at the outer fibres, is known as principal stress (D) All the above

Description : Pick up the correct statement from the following:  (A) The bending stress in a section is zero at its neutral axis and maximum at the outer fibres  (B) The shear stress is zero at the outer ... (C) The bending stress at the outer fibres, is known as principal stress  (D) All the above 

Last Answer : (D) All the above 

You can buy a $1,000 face value zero-coupon bond for $600, the bond matures in 10 years. How can you describe the circumstances under which you would consider buying the bond.?

Description : You can buy a $1,000 face value zero-coupon bond for $600, the bond matures in 10 years. How can you describe the circumstances under which you would consider buying the bond.?

Last Answer : You can buy them in $1000 increments, making them easy for everyday investors don't mention any causes until they ask

Zero Coupon Bonds?

Description : Zero Coupon Bonds?

Last Answer : When you buy a standard bond you invest in an instrument that pays interest. The rate of interest paid is also known as the coupon rate, or just coupon for short. If you invest $10,000 ... affected by interest rate changes than an investor in regular bonds for the total length of time to maturity.

Stress strain curve of high tensile steel (A) Has a definite yield point (B) Does not show definite yield point but yield point is defined by 0.1% proof stress (C) Does not show definite yield point but yield point is defined by 0.2% proof stress (D) Does not show definite yield point but yield point is defined by 2% proof stress,

Description : Stress strain curve of high tensile steel (A) Has a definite yield point (B) Does not show definite yield point but yield point is defined by 0.1% proof stress (C) Does not show definite yield ... proof stress (D) Does not show definite yield point but yield point is defined by 2% proof stress,

Last Answer : Answer: Option C

Which of these statement is true about production possibility curve (PPC/PPF) (a) It shows various combinations of two goods which yield same level of satisfaction (b) It shows various combination of two goods which an economy can produce with a given amount of resources (c) It shows various combination of two goods which an economy can produce with a given budget (d) It shows various combination of two goods which an economy can produce with a given time

Description : Which of these statement is true about production possibility curve (PPC/PPF) (a) It shows various combinations of two goods which yield same level of satisfaction (b) It shows various combination of two ... (d) It shows various combination of two goods which an economy can produce with a given time

Last Answer : (b) It shows various combination of two goods which an economy can produce with a given amount of resources

In a reinforced concrete beam , the shear stress distribution above the neutral axis following a (a) A straight line (b) Circular curve (c) Parabolic curve (d) All the above

Description : In a reinforced concrete beam , the shear stress distribution above the neutral axis following a (a) A straight line (b) Circular curve (c) Parabolic curve (d) All the above

Last Answer : (c) Parabolic curve

What happens to a company when its debt-to-assets ratio increases? a. Its credibility among creditors suffers. b. It envisages higher risk. c. Its short term interest rates increase. d. Its bond rating is reduced. e. c, d

Description : What happens to a company when its debt-to-assets ratio increases? a. Its credibility among creditors suffers. b. It envisages higher risk. c. Its short term interest rates increase. d. Its bond rating is reduced. e. c, d

Last Answer : e. c, d

The economic environment for this simulation game will include a. a favorable environment featuring limited growth, high inflation, and reasonable interest rates. b. a favorable environment featuring modest growth, low inflation, and reasonable interest rates. c. a highly variable environment featuring significant changes in growth, inflation, and drastic fluctuations in interest rates. d. a constant environment featuring measurable growth, constant inflation rates, and constant interest rates. e. economic downturn and other surprises.

Description : The economic environment for this simulation game will include a. a favorable environment featuring limited growth, high inflation, and reasonable interest rates. b. a favorable environment featuring ... inflation rates, and constant interest rates. e. economic downturn and other surprises.

Last Answer : b. a favorable environment featuring modest growth, low inflation, and reasonable interest rates.

The Philips curve shows that (a) High unemployment rates are associated with low increases in money wage rates (b) Low unemployment rates are associated with low rates of inflation (c) High unemployment rates are associated with low rates of inflation (d) High inflation rates are associated with small increases in money wage rates.

Description : The Philips curve shows that (a) High unemployment rates are associated with low increases in money wage rates (b) Low unemployment rates are associated with low rates of inflation (c) High ... rates of inflation (d) High inflation rates are associated with small increases in money wage rates.

Last Answer : (c) High unemployment rates are associated with low rates of inflation  

Where do you suggest putting some cash in the US for interest yield but without the risk of stocks, mutual funds or ETF?

Description : Where do you suggest putting some cash in the US for interest yield but without the risk of stocks, mutual funds or ETF?

Last Answer : To start I would save $5,000 in a high interest savings account. To at least one years worth of savings for an emergency account. Before you start playing on the stock market. Low yield savings bonds are good . Only buy stocks if you can afford to lose that investment. I am not a financial expert.