Economics - Bonds MCQ Test: Economics - Bonds MCQs - Practice Questions
1. What is the purpose of the 'Securities and Exchange Commission' (SEC) in the context of bond markets?
2. What characterizes a 'Perpetual Bond' in uncommon bond scenarios?
3. What is the primary purpose of 'Reinvestment Risk' in bond markets?
4. What is the purpose of a 'Sinking Fund' in bond terms?
5. What is the primary function of the 'Federal Reserve' in influencing interest rates?
6. What is the primary risk associated with 'Credit Default Swaps' (CDS)?
7. What is the primary function of a 'Bond Rating'?
8. What is a 'Coupon' in the context of bond terminology?
9. In rare bond structures, what does the term 'Stripped Bond' refer to?
10. What role does 'Inflation' play in bond investing?
11. What risk is associated with 'Synthetic CDOs' in the realm of uncommon bond structures?
12. How does 'Convexity' contribute to a bond portfolio's risk management?
13. What does the term 'Collateralized Debt Obligation' (CDO) refer to in bond markets?
14. What sets 'Mango Bonds' apart as a rare financial instrument?
15. What role does the 'Coupon Rate' play in determining a bond's yield?
16. How do 'Yankee Bonds' differ from other bonds in the international market?
17. What makes 'Social Impact Bonds' unique in the realm of rare financial instruments?
18. What is the primary risk associated with 'Junk Bonds'?
19. What is the 'Fiscal Policy' and how can it impact interest rates?
20. How does 'Duration' differ from 'Maturity' in bond terms?
21. What does the term 'Junk Bond' commonly refer to in bond markets?
22. What is the main function of bonds in the financial market?
23. In the realm of uncommon bond structures, what characterizes 'Ginnie Mae Bonds'?
24. What distinguishes a 'Convertible Bond' from a traditional bond?
25. What is the relationship between bond prices and interest rates?
26. What does the term 'Yield to Maturity' (YTM) represent in bond investing?
27. What is the primary characteristic of 'Green Bonds' in rare financial instruments?
28. How does 'Negative Convexity' affect mortgage-backed securities (MBS) during periods of falling interest rates?
29. What does the 'Efficient Market Hypothesis' suggest regarding bond prices?
30. What distinguishes 'Samurai Bonds' as a rare financial instrument?
31. What distinguishes 'Callable Bonds' from non-callable ones?
32. What characterizes a 'Perpetual Bond' in terms of its maturity?
33. What factors contribute to the complexity of valuing mortgage-backed securities (MBS)?
34. In rare financial instruments, what risk is associated with 'Contingent Convertible Bonds'?
35. How does 'Default Risk' impact the pricing of corporate bonds?
36. What is the 'Liquidity Coverage Ratio' (LCR) designed to ensure in the banking sector?
37. What characterizes the 'Yield Curve' and its shapes?
38. What distinguishes a 'Stripped Treasury Security' from a traditional Treasury security?
39. What is the significance of the 'TED Spread' in financial markets?
40. What role does the 'Fisher Effect' play in understanding interest rates?