Business Finance - Practice Test

[#166] A Crawling Peg System means

(A) Fixed Exchange Rate System

(B) Floating Exchange Rate System

(C) Hybrid of Fixedand Floating Exchange System

(D) None of the above

Correct Answer

(C) Hybrid of Fixedand Floating Exchange System

[#167] The time value of money supports the comparison of cash flows recorded at different time period by

(A) Discounting all cash flows to a common point of time

(B) Compounding all cash flows to a common point of time

(C) Using either A or B

(D) None of the above

Correct Answer

(C) Using either A or B

[#168] Which one of the following is the main objective of IFCI?

(A) To offer small and large investors the means of acquiring shares in the widening prosperity resulting from the steady industrial growth of the country

(B) To upgrade technology modernization and promote the marketing of products of the small-scale sector

(C) To serve as the apex institution for term finance for the industry with coordination, regulation, and supervision of the working of other financial institution

(D) To provide medium and long-term financial assistance to industrial undertakings, particularly in those circumstances in which banking accommodation is inappropriate or resource to the capital market is impracticable

Correct Answer

(D) To provide medium and long-term financial assistance to industrial undertakings, particularly in those circumstances in which banking accommodation is inappropriate or resource to the capital market is impracticable

[#169] "The cost of capital is the minimum rate of return which a firm requires as a condition for undertaking an investment." This definition is given by

(A) Soloman Ezra

(B) Milton H. Spencer

(C) R. M. Lynch

(D) None of these

Correct Answer

(B) Milton H. Spencer

[#170] Arrange the following steps of operation cycle in correct order 1. Conversion of a accounts receivables into cash. 2. Conversion of work-in-progress into finished goods. 3. Conversion of raw-material into work-in-progress. 4. Conversion of finished goods into accounts receivable.

(A) 2, 1, 4, 3

(B) 4, 3, 2, 1

(C) 3, 2, 4, 1

(D) 1, 4, 3, 2

Correct Answer

(C) 3, 2, 4, 1

Business Finance - Study Mode

[#166] A Crawling Peg System means

Correct Answer

[#167] The time value of money supports the comparison of cash flows recorded at different time period by

Correct Answer

[#168] Which one of the following is the main objective of IFCI?

Correct Answer

[#169] "The cost of capital is the minimum rate of return which a firm requires as a condition for undertaking an investment." This definition is given by

Correct Answer

[#170] Arrange the following steps of operation cycle in correct order 1. Conversion of a accounts receivables into cash. 2. Conversion of work-in-progress into finished goods. 3. Conversion of raw-material into work-in-progress. 4. Conversion of finished goods into accounts receivable.

Correct Answer