Just Required Correct Answers. 1- The amount which borrower has to pay to lender for taking and using his amount on total amount accumulated is called as _____________. a. Real rate of interest b. Nominal interest rate c. Nominal risk free interest rate d. Compound interest

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Just Required Correct Answers.

1- The amount which borrower has to pay to lender for taking and using his amount on total
amount accumulated is called as _____________.
a. Real rate of interest
b. Nominal interest rate
c. Nominal risk free interest rate
d. Compound interest 

2- During the financial year 2019-20 OGDCL has earned huge profits and they have surplus funds available for making new investments. The top management after detailed discussion and analysis has decided to purchase the share of Hascol Company Ltd in a recent IPO. This decision of the management is called as ____________.
a. Asset Management Decision
b. Investment Decision
c. Financing Decision
d. Equity Investment Decision 

 

3-  Which of the following DOES NOT belong to Over the Counter (OTC) market?
a. Mostly Unlisted securities are traded
b. Network of dealers
c. Less Participation of general public
d. No physical Location 

 

4-  Which of the following DOES NOT truly represent the characteristics of the debentures?
a. High Risk
b. High Interest
c. More feasible
d. No clear purpose 

 

5- Following are all examples of the external sources of financing EXCEPT?
a. Bonds for new project
b. Debentures
c. Bank Loan
d. Reserves for Mortgage Loan

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