The demand for heavy loans can cause:
A. excess funds for banks
B. deficiencies for banks
C. organized reservation
D. competitive reservations
The maximum maturity days of holding commercial paper are:
A. 170 days
B. 270 days
C. 120 days
D. 5 days
The liquidity status of certificate of deposit which is more negotiable is considered as:
A. certified liquidity
B. term liquidity
C. more liquid
D. less liquid
The negotiable deposit certificate are traded in:
A. secondary markets
B. primary markets
C. direct markets
D. indirect markets
High price to earnings ratio shows company’s:
A. Low dividends paid
B. High risk prospect
C. High growth prospect
D. High marginal rate
In internal rate of returns, discount rate which forces net present values to become zero is classified as:
A. Positive rate of return
B. Negative rate of return
C. External rate of return
D. Internal rate of return
Set of projects or set of investments usually maximize firm value is classified as:
A. Optimal capital budget
B. Minimum capital budget
C. Maximum capital budget
D. Greater capital budget
Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is:
A. Positive
B. Negative
C. Zero
D. One
Number of years forecasted to recover an original investment is classified as:
A. Payback period
B. Forecasted period
C. Original period
D. Investment period
Process in which managers of company identify projects to add value is classified as:
A. Capital budgeting
B. Cost budgeting
C. Book value budgeting
D. Equity budgeting
