Finance MCQs

Page No. 18

Document in a corporation which consists of amount of stock, name and addresses of directors is classified as_____________?


aLiability plan


bStock planning


cCorporation paperwork


dCharter


View Answer Charter

Financial security with low degree risk and investment held by businesses is classified as________________?


aTreasury bills


bCommercial paper


cNegotiable certificate of deposit


dMoney market mutual funds



As free bonds issue for welfare by industrial agencies or pollution control agencies are classified as__________?


aAgent bonds


bDevelopment bonds


cPollution control bonds


dBoth B and C


View Answer Both B and C

Risk of fall in income due to fall in interest rates in future is classified as__________?


aIncome risk


bInvestment risk


cReinvestment risk


dMature risk


View Answer Reinvestment risk

If coupon rate is equal to going rate of interest, then bond will be sold________?


aAt par value


bBelow its par value


cMore than its par value


dSeasoned par value


View Answer At par value

Long period of bond maturity leads to_________?


aMore price changes


bStable prices


cStanding prices


dMature prices


View Answer More price changes

Projects which are mutually exclusive but different on scale of production or time of completion then the___________?


aExternal return method


bNet present value of method


cNet future value method


dInternal return method



If stock market price is higher than strike price so call option____________?


aPrice will be lower


bRate will be higher


cPrice will be higher


dRate will be lower



Current option price is added to present value of portfolio for calculating_________?


aFuture value of portfolio


bCurrent value of stock


cFuture value of stock


dPresent value of portfolio



Rate of required return by debt holders is used for estimation the__________?


aCost of debt


bCost of equity


cCost of internal capital


dCost of reserve assets


View Answer Cost of debt

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