INVESTMENT BASIC -X

5.What does investment stand for?

• A. approximate increase in the national stocks

• B.             the application of funds for the products and services employed for the production process

• C.             use of funds for the assets with the purpose to earn returns

• D.             applying money to buy a flat or a house

4.Investors agree to invest in high- risk investments if only

• A) There are any true speculations

• B) The predicted return is satisfactory for taking a risk

• C) There are no safe options except for holding cash

• D) The return is short

3.An investor invests in assets known as a

• A) Securities

• B) Block of Assets

• C) Portfolio

• D) None of the above

2.Which one of the following is shown first when the assets are arranged in the order of their liquidity?

• A) Investment

• B) Cash in hand

• C) Debtors

• D) None of the above

1.If there is an increase in interest rates than the fixed interest rate of the corporate bond will

• A) Return to the corporation

• B) Decrease in value

• C) Remain unchanged

• D) Increase in value

6.The ultimate concern of Financial Management is:

• A.             to arrange the funds

• B.             effective management of all the business

• C.             receiving the maximum profit

• D. to acquire and utilize every aspect of financial resources in order to maintain the firm activities

7.The finance manager’s role is to:

• A.             ensures that the funds are properly utilized

• B.             maintains the financial health

• C.             effective supervision of capital

• D.             obtains capital assets of the organization

8. In the share market, the market value of any share is decided by:

• A.             shareholders

• B.             the government

• C.             investment market

• D.the respective companies

9.The ultimate purpose of Financial management is:

• A.             to get a maximum return

• B.             to increase the wealth of owners

• C.             to have a maximum risk factor

• D.             to get a maximum profit

10. Which one is/are financial assets?

• A.             bonds

• B.             machines

• C.             stocks

• D.             both a and c