MGT604 — Management of Financial Institutions — Final Term Past Papers & Solved MCQs

Q1. The common characteristics of open-ended and closed-ended is:

• A.Shares of both are traded in stock exchange.✓ Correct
• B.Both are responsible to buy back their shares.
• C.Both are just like joint stock companies.
• D.Both are managed by investment companies.

Q2. Mr. A wants to start a small size business unit in his own village, for this purpose he will apply for which type of loan?

• A.Auto loan
• B.Business finance loan✓ Correct
• C.None of the given options
• D.Mortgage loan

Q3. ICP is controlled under which of the following sector?

• A.Semi government
• B.Private
• C.Government✓ Correct
• D.Public

Q4. Which of the following is the type of mutual fund that invests its assets only in the most liquid money instruments?

• A.Money market funds✓ Correct
• B.Income funds
• C.Growth & Income funds
• D.Income & Growth funds

Q5. Which of the following parties is NOT involved in the demand draft procedure?

• A.Issuing Bank
• B.Payee Bank
• C.Purchaser
• D.Credit department✓ Correct

Q6. In some countries, time deposit is also known as which of the following?

• A.Flat deposit
• B.Promotional deposit
• C.Term deposit
• D.Fixed deposit✓ Correct

Q7. To transfer funds in coded language, which of the following means is used by the banks?

• A.Online fund transfer
• B.Telegraphic transfer✓ Correct
• C.Demand draft
• D.Pay order

Q8. Which area of the banks has been neglected while making reforms?

• A.Payment system
• B.Human resource✓ Correct
• C.E-banking
• D.Finance

Q9. A loan is entailed to redistribute the _______ over time, between the lender and the borrower.

• A.Financial liabilities✓ Correct
• B.Financial instruments
• C.Financial assets
• D.Financial debts

Q10. IRA can be described as:

• A.Internal revenue account
• B.International rating agency
• C.Individual retirement account✓ Correct
• D.International reading association