MTE BBA-III SEM FOFM

Investment is the _______________

• Net additions made to the nation’s capital stocks

• Person’s commitment to buy a flat or house

• Employment of funds on assets to earn returns

• Employment of funds on goods and services that are used in production process

2. Financial Management is mainly concerned with ______________.

• All aspects of acquiring and utilizing financial resources for firms activities

• Arrangement of funds

• Efficient Management of every business

• Profit maximization

Which one of the following is not a money market securities?

• Treasury bills

• National savings certificate

• Certificate of deposit

• Commercial paper

The financial system is a set of interrelated institutions, instruments and markets.

• True

• False

___________ are financial assets.

• Bonds

• Machines

• Stocks

• A and C

Present value takes _________.

• Discounting rate

• Compounding rate

• Inflation rate

• Deflation rate

Secondary Market is the market where second hand securities are sold

• True

• False

A project costs Rs.16,000.The estimated annual cash inflows during its 3 year life are Rs. 8,000, Rs.7,000 and Rs. 6,000 respectively. What will be the pay-back period?

• 2 years

• 2.5 years

• 2.17 years

• 2.75 years

. If present value of total cash outflow is Rs.15,000 and present value of total cash inflow is Rs. 14,000, what is the net present value of the project?

• Rs. 1000

• Rs. -1000

• Rs. 0

• Rs. 2000

Decision criterion with respect to profitability index to accept project if?

• Profitability index is equal to or less than 1

• Profitability index is greater than 1

• Profitability index is less than or equal to 1

• Profitability index is greater than 10