91
What prompted Bretton woods Agreement?
A)
To set up a system that would maintain a stable exchange rate system
B)
To create a flexible exchange rate system
C)
To stop World War II
D)
Eradicate the economic difficulties brought in by World War II
Answer & Solution
Answer: Option
A
92
Match the following.
List-I (Capital Structure Principles)List-II (Features)
a. Cost principle
1. Management chooses such combination of sources of financing, which can easily adapt to changes
b. Risk principle
2. While designing the structure, the finance manager remembers that existing management control and ownership remains undisturbed
c. Control principle
3. Reliance is placed more on equity for financing capital requirements than excessive use of debts
d. Flexibility principle
4. Cost of capital structure should be minimised and Earning Per Share (EPS) should be maximised
A)
a-2, b-1, c-4, d-3
B)
a-3, b-1, c-4, d-2
C)
a-3, b-4, c-1, d-2
D)
a-4, b-3, c-2, d-1
Answer & Solution
Answer: Option
D
93
One difference between a financial lease and operating lease is that
A)
there is a often a call option in a financial lease
B)
there is often an option to buy in an operating lease
C)
an operating lease is often cancellable by the lessee
D)
a financial lease is often cancellable by the lessee
Answer & Solution
Answer: Option
C
94
Assertion (A): The comparative cost theory is static in character.Reason (R): The comparative cost theory is based on fixed supplies of factors of production.
A)
(A) is correct, but (R) is incorrect
B)
(R) is correct, but (A) is incorrect
C)
(A) and (R) both are correct, but (R) is not the correct explanation of (A)
D)
(A)and (R) both are correct, and (R) is the correct explanation of (A)
Answer & Solution
Answer: Option
D
95
In the foreign exchange market, the . . . . . . . . of one country is traded for the . . . . . . . . of another country.
A)
currency, currency
B)
currency, financial instruments
C)
currency, goods
D)
goods, goods
Answer & Solution
Answer: Option
A
96
Which of the following are the main benefits of non-voting shares to a company?
A)
It may protect the company from hostile takeovers
B)
The voting rights may not be provided to such shareholders
C)
Non-voting shareholders may be given a higher dividend
D)
All of the above
Answer & Solution
Answer: Option
D
97
The Finance Act, 2020, changed the method of dividend taxation. Which of the following facts are related to dividend taxation?
A)
The dividend receivedfrom an Indian company was exempt until 31st March 2020 (FY2019-20), as the company declaring such dividend already paid dividend distribution tax before making payment
B)
All the dividend receivedon or after 1st April 2020, is taxable in the hands of the investor or shareholder
C)
The DDT liability on companies and mutual funds stand withdrawn
D)
All of the above
Answer & Solution
Answer: Option
D
98
Which of the following can be defined as the cost of capital from an investor's point of view?
A)
Interest Rate
B)
Market Value
C)
Yield of Capital Sacrificed
D)
Stock Exchange Value
Answer & Solution
Answer: Option
C
99
In an agreement to exchange one currency for another in three months at a fixed price, the price is the . . . . . . . .
A)
spot exchange rate
B)
money exchange rate
C)
forward exchange rate
D)
monthly exchange rate
Answer & Solution
Answer: Option
C
100
ADRs and GDRs are an excellent means of investment to invest in India for
A)
NRl's
B)
Foreign nationals
C)
Both A and B
D)
None of the above
Answer & Solution
Answer: Option
C
