Which of the following is NOT an example of non-deposit taking financial institution (NDFI)? i) Insurance companies ii) Unit Trusts iii) Building Societies iv) Leasing Companies A) All the above (i, ii, iii and iv) B) Both i and ii C) iii Only D) Both iii and iv 3. Which of the following is not TRUE for financial ratio analysis? Select one: A) The ratios are not exhaustive. B) Comparisons with other firms can only be made with firms of the same size and activity. C) Generally one year’s figures are sufficient. D) Ratios don’t stand in isolation: they are interrelated 4. Which of the following statements is FALSE? A) Data Envelopment Analysis (DEA) uses linear programming techniques to estimate efficiency. B) Stochastic Frontier Analysis (SFA) is the dominant in the parametric approaches. C) Data Envelopment Analysis (DEA) requires a pre-specified functional form. D) Stochastic Frontier Analysis (SFA) has an error term in the estimation of efficiency 5. Futures contracts are: i) Private contracts between two parties ii) Settled every day iii) Traded on exchange iv) Almost no credit risk A) All the above (i, ii, iii and iv) B) i, ii and iii C) Both i and iv D) ii, iii and iv 6. Which of the following trade in Exchange market? i) Futures contract ii) An option iii) A Swap iv) An exotic Option A) All the above (i, ii, iii and iv) B) i, ii and iii
Please answer the multiple choice questions below:
1. One possible solution to adverse selection problem is to offer warranty, as it would be viewed as a signal of quality. 'Signalling' refers to?
i) Actions ofthe 'Informed party'in the adverse selection problem
ii) Actions of the 'less informed partyin the adverse selection problem
ii) Actions of an Insurance company to gather information.
A) i Only
B) Both iand i
C) Both iand ii
D) Both i and ii
2. Which of the following is NOT an example of non-deposit taking financial institution (NDFI)?
i) Insurance companies
ii) Unit Trusts
iii) Building Societies
iv) Leasing Companies
A) All the above (i, ii, iii and iv)
B) Both i and ii
C) iii Only
D) Both iii and iv
3. Which of the following is not TRUE for financial ratio analysis?
Select one:
A) The ratios are not exhaustive.
B) Comparisons with other firms can only be made with firms of the same size and
activity.
C) Generally one year’s figures are sufficient.
D) Ratios don’t stand in isolation: they are interrelated
4. Which of the following statements is FALSE?
A) Data Envelopment Analysis (DEA) uses linear programming techniques to estimate
efficiency.
B) Stochastic Frontier Analysis (SFA) is the dominant in the parametric approaches.
C) Data Envelopment Analysis (DEA) requires a pre-specified functional form.
D) Stochastic Frontier Analysis (SFA) has an error term in the estimation of efficiency
5. Futures contracts are:
i) Private contracts between two parties
ii) Settled every day
iii) Traded on exchange
iv) Almost no credit risk
A) All the above (i, ii, iii and iv)
B) i, ii and iii
C) Both i and iv
D) ii, iii and iv
6. Which of the following trade in Exchange market?
i) Futures contract
ii) An option
iii) A Swap
iv) An exotic Option
A) All the above (i, ii, iii and iv)
B) i, ii and iii
C) Both i and ii
D) ii, iii and iv
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