Business Finance - Study Mode
[#256] Assertion (A): A furores contract specifies in advance the exchange rate to be used, but it is not as flexible as a forward contract. Reason (R): A futures contract is for a specific currency amount and a specific marurity date.
Correct Answer
(A) (R) is a correct explanation of (A)
[#257] Which of the following is not a source of credit information of prospective customers?
Correct Answer
(A) Letter of credit
[#258] Match the items of List-I with those of List-II and indicate the correct answer: List-I List-II a. Net income approach 1. Working capital management b. Profitability index 2. Over capitalisation c. Concentration banking 3. Capital structure planning d. Lower rate of return 4. Capital budgeting decision
Correct Answer
(A) a-3, b-4, c-1, d-2
[#259] An agreement to exchange of one currency for another in one month is a
Correct Answer
(C) Forward transaction
[#260] Which of the following are key benefits of Differential Voting Rights (DVRs)?
Correct Answer
(D) All of the above