Financial Management - Study Mode

[#451] Market value of the shares are decided by ____________.
Correct Answer

(B) the investment market

Explanation

Solution: Market value of the shares are decided by the investment market. Market value is the price an asset would fetch in the marketplace.

[#452] Which one of the following is not a money market securities?
Correct Answer

(B) National savings certificate

Explanation

Solution: National savings certificate is not a money market securities. The National Savings Certificate is a fixed income investment scheme that you can open with any post office.

[#453] Capital budgeting is related to ________.
Correct Answer

(A) long terms assets

Explanation

Solution: Capital budgeting is related to long terms assets. Capital budgeting is the process a business undertakes to evaluate potential major projects or investments.

[#454] The expansion of CAPM is ____________.
Correct Answer

(B) Capital asset pricing model.

Explanation

Solution: The expansion of CAPM is Capital asset pricing model. The capital asset pricing model (CAPM) is used to calculate the required rate of return for any risky asset.

[#455] Working capital management is managing ____________.
Correct Answer

(A) short term assets and liabilities

Explanation

Solution: Working capital management is managing short term assets and liabilities. The goal of working capital management is to ensure that a company can afford its day-to-day operating expenses while, at the same time, investing the company's assets in the most productive way.