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

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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

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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

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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

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bNet present value of method

✓


cNet future value method

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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

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dCost of reserve assets

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View Answer Cost of debt

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