The issuance of securities in which investment bank does not guarantee back up price and act as distributor, in planning of issue is considered as ____________?

Related Mcqs:

1. The placement of financial issue in which investment bank and municipality together find the large buyers is classified as ____________?

   A. reserve placement
   B. federal placement
   C. private placement
   D. government placement

2. The issues sold by investment banks and guarantees the issuer by buying new issue at fixed price is classified as _________?

   A. index commitment underwriting
   B. insurance underwriting
   C. default risk underwriting
   D. firm commitment underwriting

3. If the price of municipal bonds suddenly changes because of an unexpected interest rate change then the investment bank ____________?

   A. faces a high profit
   B. faces a loss
   C. face a inflation
   D. face an index risk

4. The situation in which the investment bank faces no risk of mispricing regarding security is considered as __________?

   A. least good premium
   B. least good discount price
   C. best efforts offering
   D. least good index

5. A financial guarantee ensure that the lander will be paid ____________?

   A. principle and interest
   B. debt and cash
   C. capital and profit
   D. cash and interest

6. The principal amount in the Treasury Inflation Protection Securities is considered as ____________?

   A. tax adjusted principal
   B. inflation adjusted principal
   C. auction adjusted principal
   D. premium adjusted principal

7. Investment in a group of securities is known as?

   A. Dividend
   B. Portfolio
   C. Investment
   D. BVPS

   Submitted by: Nadar Ali

8. Maturity date decides at time of issuance of bond and legally permissible is classified as____________?

   A. Original maturity
   B. Permanent maturity
   C. Artificial maturity
   D. Valued maturity

9. The type of bonds in which there are many maturity dates and part of issue is paid off at every maturity date is considered as ___________?

   A. pledged bonds
   B. serial bonds
   C. series bonds
   D. parallel bonds

10. The type of sale in which the investment bank got the rights to underwrite, distribute and originate new bonds is classified as __________?

    A. least effort sale
    B. effortless sale
    C. negotiated sale
    D. negotiated sale