Financial management

1. The type of collateral (security) used for short-term loan is:

Real estate
Plant & Machinery
Stock of good
Equity share capital

Detailed SolutionThe type of collateral (security) used for short-term loan is:

2. A portfolio which lies below the efficient frontier is described as________________.

optimal
unattainable
dominant
dominated

Detailed SolutionA portfolio which lies below the efficient frontier is described as________________.

3. Non cash revenues are Rs 500,000 and net income is Rs 950,000 then net cash flow would be

Rs 475,000.00
Rs 485,000.00
Rs 1,450,000.00
Rs 450,000.00

Detailed SolutionNon cash revenues are Rs 500,000 and net income is Rs 950,000 then net cash flow would be

4. Right side of balance sheet states the

appreciated earnings
liabilities
assets
stocks earnings

Detailed SolutionRight side of balance sheet states the

5. The Accounting period cycle of NSE is___________.

Wednesday to next Tuesday
Tuesday to next Wednesday
Monday to next Friday
Wednesday to next Wednesday

Detailed SolutionThe Accounting period cycle of NSE is___________.

6. Operating leverage arises because of:

Fixed Cost of Production
Fixed Interest Cost
Variable Cost
None of the above

Detailed SolutionOperating leverage arises because of:

7. A curve which shows attitude towards risk just way reflected in return trade-off function is classified as

difference curve
indifference curve
efficiency curve
affectivity curve

Detailed SolutionA curve which shows attitude towards risk just way reflected in return trade-off function is classified as

8. Fixed cost per unit _______.

does not change with volume of production
be flexible according to the rate of interest
changes according to volume of production
not remains constant

Detailed SolutionFixed cost per unit _______.

9. An amount invested is Rs 4000 and return is Rs 300 then rate of return will be

4.30%
3.70%
7.50%
0.08%

Detailed SolutionAn amount invested is Rs 4000 and return is Rs 300 then rate of return will be

10. A bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of ________.

bundling
un-bundling
financial engineering
credit enhancement E. B & C

Detailed SolutionA bond issue is broken up so that some investors will receive only interest payments while others will receive only principal payments, which is an example of ________.

Page 1Page 2Page 3Page 4Page 5
Test 1Test 2Test 3Test 4Test 5Test 6Test 7Test 8Test 9Test 10Test 11Test 12Test 13Test 14Test 15Test 16Test 17Test 18Test 19Test 20Test 21Test 22Test 23