quiz6

The primary objective of issuing treasury bills is To manage short-term cash flow deficit To raise capital for taking up long-term development projects To manage excess liquidity in the market To set interest rate in the economy

Which of the following statements describes the cost of capital?                           A) The internal rate of return on investments                           B) The maximum acceptable rate of return on investments                           C) The minimum rate of return on investments                           D) The interest rate the bank charges its best customers

What risks do common stockholders take that other suppliers of long term capital do not?Discuss the steps of capital budgeting

Explain the behavioral issues involved incapital budgeting and identify how companiestry to control the capital budgeting process.

Which of the following are a part of capital budgeting? More than one answer may be correct. Multiple select question. Deciding what new products to introduce Deciding in what markets to compete Deciding how to finance operations Deciding how to manage short-term operating activities

Which of the following is a tool that is used by the central bank to control the quantity of money? *a. gdpb. excess reservec. open market operationsd. government expenditure multiplier

The implications of QE ( quantitative easing) for the cash rate; yields on federal treasury bonds; yields on bonds issued by state and territory governments and corporates; the stock market; and the economy.

Which of the following determine(s) the level of real interest rates? 1) The supply of savings by households and business firms II) The demand for investment funds III) The government's net supply and/or demand for funds O I, II, and III OI and II only O I only Oll only

Why is the WACC used in capital budgeting?

When financial managers or their investment bankers design new securities or financial processes, their efforts are referred to as Blank______. Multiple choice question. capital restructuring financial analysis financial engineering capital budgeting