Sunday, 7 April 2019


Finance Quizzes


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31. Net Present Value is calculated as
(A) cash inflow – cash outflow
(B) cash outflow – cash inflow
(C) PV of cash inflow – PV of cash outflow
(D) PV of cash outflow – PV of cash inflow
32. An investment should be accepted if its NPV is
(A) 0
(B) 1
(C) positive
(D) negative
33. The ratio between the amount of profit and investment is called the
(A) NPV
(B) opportunity cost
(C) risk premium
(D) rate of return
34. An investment should be accepted if
(A) Rate of Return > Opportunity Cost
(B) Rate of Return < Opportunity Cost
(C) Rate of Return = Opportunity Cost
(D) A, B and C are irrelevent
35. Governments and corporations issue bonds to
(A) borrow money
(B) lend money
(C) both A and B
(D) none of these
36. Regular interest payment to the bond holders is called
(A) principal
(B) coupon
(C) face value
(D) yield
37. At maturity the bond holders get back their principal. The principal is called
(A) coupon
(B) face value
(C) yield
(D) return
38. Any economic resource that can produce economic value to the holder is called
(A) asset
(B) return
(C) maturity
(D) yield
39. A collection of assets held by an investor is called
(A) corporate bond
(B) random returns
(C) risk premium
(D) portfolio
40. The risk of a well-diversified portfolio depends on the __________ of the securities included in the portfolio.
(A) specific risk
(B) market risk
(C) both A and B
(D) none of these
ANSWERS: FINANCE QUIZZES
31. C
32. C
33. D
34. A
35. A
36. B
37. B
38. A
39. D
40. B

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