Q1 of 40
Method of matching orders by posting orders of buying and selling is classified as______________?
Correct Answer: Option A — Electronic communication network Detailed Academic Explanation: Method of matching orders by posting orders of buying and selling is classified as Electronic communication network .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q2 of 40
Funds which are used as interest-bearing checking accounts are classified as____________?
Correct Answer: Option A — Money market funds Detailed Academic Explanation: Funds which are used as interest-bearing checking accounts are classified as Money market funds .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q3 of 40
Federal Reserve policy and federal surplus or deficit of budget affect the____________?
Correct Answer: Option B — Cost of money Detailed Academic Explanation: Federal Reserve policy and federal surplus or deficit of budget affect the Cost of money .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q4 of 40
Bonds which are riskier than corporate bonds and are issued by major corporations are classified as___________?
Correct Answer: Option D — Preferred stocks Detailed Academic Explanation: Bonds which are riskier than corporate bonds and are issued by major corporations are classified as Preferred stocks .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q5 of 40
Professionals such as doctors, accountants and lawyers often make corporations are classified as____________?
Correct Answer: Option D — Both B and C Detailed Academic Explanation: Professionals such as doctors, accountants and lawyers often make corporations are classified as Both B and C .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q6 of 40
Ability to trade at net price very quickly is classified as___________?
Correct Answer: Option B — Liquidity Detailed Academic Explanation: Ability to trade at net price very quickly is classified as Liquidity .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q7 of 40
Rate of required return by debt holders is used for estimation the__________?
Correct Answer: Option A — Cost of debt Detailed Academic Explanation: Rate of required return by debt holders is used for estimation the Cost of debt .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q8 of 40
Current option price is added to present value of portfolio for calculating_________?
Correct Answer: Option B — Current value of stock Detailed Academic Explanation: Current option price is added to present value of portfolio for calculating Current value of stock .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q9 of 40
Projects which are mutually exclusive but different on scale of production or time of completion then the___________?
Correct Answer: Option B — Net present value of method Detailed Academic Explanation: Projects which are mutually exclusive but different on scale of production or time of completion then the Net present value of method .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q10 of 40
Long period of bond maturity leads to_________?
Correct Answer: Option A — More price changes Detailed Academic Explanation: Long period of bond maturity leads to More price changes .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q11 of 40
If coupon rate is equal to going rate of interest, then bond will be sold________?
Correct Answer: Option A — At par value Detailed Academic Explanation: If coupon rate is equal to going rate of interest, then bond will be sold At par value .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q12 of 40
As free bonds issue for welfare by industrial agencies or pollution control agencies are classified as__________?
Correct Answer: Option D — Both B and C Detailed Academic Explanation: As free bonds issue for welfare by industrial agencies or pollution control agencies are classified as Both B and C .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q13 of 40
A price for equity is called______________?
Correct Answer: Option B — Cost of equity Detailed Academic Explanation: A price for equity is called Cost of equity .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q14 of 40
Hewlett-Packard and Microsoft are examples of__________?
Correct Answer: Option D — Corporation Detailed Academic Explanation: Hewlett-Packard and Microsoft are examples of Corporation .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q15 of 40
Double declining balance method and sum of years digits are included in__________?
Correct Answer: Option D — Accelerated methods Detailed Academic Explanation: Double declining balance method and sum of years digits are included in Accelerated methods .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q16 of 40
In retention growth model, payout ratio is subtracted from one to calculate___________?
Correct Answer: Option C — Retention ratio Detailed Academic Explanation: In retention growth model, payout ratio is subtracted from one to calculate Retention ratio .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q17 of 40
Real rate expected cash flows and nominal rate expected cash flows must be______________?
Correct Answer: Option B — Equal Detailed Academic Explanation: Real rate expected cash flows and nominal rate expected cash flows must be Equal .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q18 of 40
Real interest rate and real cash flows do not include_____________?
Correct Answer: Option C — Inflation effects Detailed Academic Explanation: Real interest rate and real cash flows do not include Inflation effects .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q19 of 40
Right held with corporations to call issued bonds for redemption is considered as___________?
Correct Answer: Option B — Call provision Detailed Academic Explanation: Right held with corporations to call issued bonds for redemption is considered as Call provision .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q20 of 40
Required rate of return in calculating bonds cash flow is also classified as_______?
Correct Answer: Option D — Both A and B Detailed Academic Explanation: Required rate of return in calculating bonds cash flow is also classified as Both A and B .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q21 of 40
If default probability is zero and bond is not called, then yield to maturity is_____________?
Correct Answer: Option D — Equal to expected return rate Detailed Academic Explanation: If default probability is zero and bond is not called, then yield to maturity is Equal to expected return rate .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q22 of 40
Cash flows that could be generated from an owned asset by company but not use in project are classified as_________________?
Correct Answer: Option C — Opportunity costs Detailed Academic Explanation: Cash flows that could be generated from an owned asset by company but not use in project are classified as Opportunity costs .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q23 of 40
Relevant cash flow which company expects when its will implement project is classified as_____________?
Correct Answer: Option C — Incremental cash flow Detailed Academic Explanation: Relevant cash flow which company expects when its will implement project is classified as Incremental cash flow .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q24 of 40
Nominal interest rates and nominal cash flows are usually reflected the____________?
Correct Answer: Option A — Inflation effects Detailed Academic Explanation: Nominal interest rates and nominal cash flows are usually reflected the Inflation effects .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q25 of 40
In cash flow estimation, depreciation shelters companys income from_______?
Correct Answer: Option C — Taxation Detailed Academic Explanation: In cash flow estimation, depreciation shelters companys income from Taxation .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q26 of 40
Rate of return which is required to satisfy stockholders and debt holders is classified as__________?
Correct Answer: Option B — Weighted average cost of capital Detailed Academic Explanation: Rate of return which is required to satisfy stockholders and debt holders is classified as Weighted average cost of capital .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q27 of 40
In cash flow estimation, depreciation is considered as________________?
Correct Answer: Option B — Non cash charge Detailed Academic Explanation: In cash flow estimation, depreciation is considered as Non cash charge .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q28 of 40
Type of bond in which payments are made on basis of inflation index is classified as_____________?
Correct Answer: Option B — Purchasing power bond Detailed Academic Explanation: Type of bond in which payments are made on basis of inflation index is classified as Purchasing power bond .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q29 of 40
Method uses for an estimation of cost of equity is classified as___________?
Correct Answer: Option C — Discounted cash flow method Detailed Academic Explanation: Method uses for an estimation of cost of equity is classified as Discounted cash flow method .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q30 of 40
Variability for expected returns for projects is classified as___________?
Correct Answer: Option B — Stand-alone risk Detailed Academic Explanation: Variability for expected returns for projects is classified as Stand-alone risk .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q31 of 40
During planning period, a marginal cost for raising a new debt is classified as__________?
Correct Answer: Option B — Relevant cost Detailed Academic Explanation: During planning period, a marginal cost for raising a new debt is classified as Relevant cost .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q32 of 40
If coupon rate is more than going rate of interest, then bond will be sold________?
Correct Answer: Option D — Below its par value Detailed Academic Explanation: If coupon rate is more than going rate of interest, then bond will be sold Below its par value .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q33 of 40
Bonds issued to individuals by corporations are classified as__________?
Correct Answer: Option B — Corporate bonds Detailed Academic Explanation: Bonds issued to individuals by corporations are classified as Corporate bonds .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q34 of 40
Forecast by analysts, retention growth model and historical growth rates are methods used for an______________?
Correct Answer: Option A — Estimate future growth Detailed Academic Explanation: Forecast by analysts, retention growth model and historical growth rates are methods used for an Estimate future growth .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q35 of 40
An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?
Correct Answer: Option D — Cost of debt Detailed Academic Explanation: An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax Cost of debt .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q36 of 40
Beta which is estimated as regression slope coefficient is classified as___________?
Correct Answer: Option A — Historical beta Detailed Academic Explanation: Beta which is estimated as regression slope coefficient is classified as Historical beta .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q37 of 40
Set of rules consisting of behavior towards its directors, creditors, shareholders, competitors and community is considered as____________?
Correct Answer: Option C — Corporate governance Detailed Academic Explanation: Set of rules consisting of behavior towards its directors, creditors, shareholders, competitors and community is considered as Corporate governance .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q38 of 40
Price for debt is called_________?
Correct Answer: Option D — Interest rate Detailed Academic Explanation: Price for debt is called Interest rate .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q39 of 40
Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be_________?
Correct Answer: Option B — 7.14% Detailed Academic Explanation: Net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be 7.14% .
💡 Key Conceptual Anchor:
Finance — Mixed Practice
Q40 of 40
A technique uses in comparative analysis of financial statement is_________?
Correct Answer: Option C — Common size analysis Detailed Academic Explanation: A technique uses in comparative analysis of financial statement is Common size analysis .
💡 Key Conceptual Anchor:
Finance — Mixed Practice