Friday, 7 February 2020

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21. The Internal Rate of Return (IRR) is the rate of discount that makes Net Present Value (NPV)
(A) zero
(B) one
(C) positive
(D) negative
22. An investment should be accepted if its Net Present Value (NPV) is
(A) 0
(B) 1
(C) positive
(D) negative
23. 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 irrelevant
24. World Trade Organization (WTO) was established on 1 January
(A) 1993
(B) 1995
(C) 1997
(D) 1999
25. The main function of WTO is to ensure that trade flows:
I. smoothly
II. freely
III. predictably
(A) I only
(B) II only
(C) I and II only
(D) I, II and III
ANSWERS: COMMERCE QUESTIONS
21. (A) zero
22. (C) positive
23. (A) Rate of Return > Opportunity Cost
24. (B) 1995
25. (D) I, II and III

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