[amp_mcq option1=”fixed payment investment” option2=”lump sum amount” option3=”fixed interval investment” option4=”annuity” correct=”option4″]
Financial management
32. Investors seeking to avoid actively managing their portfolios will prefer which of the following assets?
[amp_mcq option1=”Common stock” option2=”Commercial bank deposits” option3=”Financial futures” option4=”Real estate” correct=”option2″]
33. Business risk can be measured by:
[amp_mcq option1=”Financial leverage” option2=”Operating leverage” option3=”Combined leverage” option4=”None of the above” correct=”option2″]
34. Which of the following is not a motive to hold cash?
[amp_mcq option1=”Transactionary Motive” option2=”Precautionary Motive” option3=”Capital Investment” option4=”None of the above” correct=”option3″]
Detailed SolutionWhich of the following is not a motive to hold cash?
35. Rate of required return by debt holders is used for estimation the
[amp_mcq option1=”cost of debt” option2=”cost of equity” option3=”cost of internal capital” option4=”cost of reserve assets” correct=”option1″]
Detailed SolutionRate of required return by debt holders is used for estimation the
36. An increasing in interest rate leads to decline in value of
[amp_mcq option1=”junk bonds” option2=”outstanding bonds” option3=”standing bonds” option4=”premium bonds” correct=”option2″]
Detailed SolutionAn increasing in interest rate leads to decline in value of
37. In expected future returns, tighter probability distribution shows risk on given investment which is
[amp_mcq option1=”smaller” option2=”greater” option3=”less risky” option4=”highly risky” correct=”option1″]
38. Payment of security if it is made at end of each period such as beginning of year is classified as
[amp_mcq option1=”annuity due” option2=”payment fixed series” option3=”ordinary annuity” option4=”deferred annuity” correct=”option3″]
39. Market in which bonds are traded over-the-counter than in an organized exchange is classified as
[amp_mcq option1=”organized markets” option2=”trade markets” option3=”counter markets” option4=”bond markets” correct=”option3″]
40. An internal rate of return in capital budgeting can be modified to make it representative of
[amp_mcq option1=”relative outflow” option2=”relative inflow” option3=”relative cost” option4=”relative profitability” correct=”option4″]