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16. Which of the following is the safest investment?
(A) Treasury bills
(B) Government bond
(C) Corporate bond
(D) Stocks

17. Net Present Value (NPV) 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

18. IMF provides assessments of latest public finance developments in its
(A) Fiscal Monitor Reports
(B) World Economic Outlook Reports
(C) Global Financial Stability Reports
(D) None of these

19. The ratio between amount of profit and investment is known as
(A) NPV
(B) opportunity cost
(C) risk premium
(D) rate of return

20. In Finance, risk is calculated by calculating the _____ of possible outcomes.
(A) mean
(B) standard deviation
(C) variance
(D) kurtosis

ANSWERS: COMMERCE MULTIPLE CHOICE QUESTIONS
16. (A) Treasury bills
17. (C) PV of cash inflow – PV of cash outflow
18. (A) Fiscal Monitor Reports
19. (D) rate of return
20. (B) standard deviation

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