Business Finance - Study Mode

[#501] Which of the following period in yearsis called Classical Gold Standard?
Correct Answer

(A) 1875-1914

[#502] Examine the following statements and choose the correct answer: Assertion (A): The American style option, compared to the European style, provides more freedom to option holders in exercising the option. Reason (R): The American style option can be exercised only at a specified date which is generally the expiration date.
Correct Answer

(C) (A) is correct, but (R) is incorrect

[#503] Match the following: List-I List-II a. Certificate of deposits 1. 91 days, 182 days and 364 days b. Debentures 2. 3 to 5 months c. Treasury bills 3. 1 to 270 days d. Commercial papers 4. Longer periods, i.e. n years
Correct Answer

(B) a-2, b-4, c-1, d-3

[#504] The principal reason for the existence of leasing is that
Correct Answer

(C) companies, financial institutions and individuals derive different benefits from owing assets

[#505] After tax cost of debt capital is calculated by
Correct Answer

(C) (1 - tax rate) × C B (before tax)