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31
The profit made by the Government (or Central Bank) by issuing currency, especially the difference between the face value of coins and their production costs is called
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Answer: Option A
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32
Securitised assets carry a unique form of risk called
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Answer: Option D
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33
Match the following.
List-I List-II
a. Fixed capital 1. . . . . . . . . refers to make-up of a firm's capitalisation
b. Normal rate of return 2. . . . . . . . . is the cause of over-capitalisation
c. Liberal dividend policy 3. Earnings per share ÷ Market price per share = . . . . . . . .
d. Capital structure 4. . . . . . . . . is the funds required for a acquisition of assets that are to be used over and over a long period
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Answer: Option A
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34
Examine the following statements.
(i) Payback Period Method measures the true profitability of a project.
(ii) Capital Rationing and Capital Budgeting mean the same.
(iii) Internal Rate of Return and Time Adjusted Rate of Return are the same.
(iv) Rate of Return Method takes into account the time value of money.
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Answer: Option C
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35
Which of the following is not one of the steps for currency exposure management?
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Answer: Option C
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36
Which of the following is the most appropriate non-spontaneous form for financing the excess seasonal current assets needs?
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Answer: Option B
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37
Financial signaling has been raised as an argument in the battle over the relevancy of dividends. Which of the following statements indicate financial signaling argument?
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Answer: Option D
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38
Preference shares
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Answer: Option D
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39
When an enterprise has an unhedged receivableor payable denominated in a foreign currency, and the settlement of the obligation has not yet taken place, that firm is said to have
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Answer: Option C
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40
Retained earning is . . . . . . . . a cost free source of capital.
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Answer: Option A
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