Description : Liquidity Preference means - (1) holding assets in the form of bonds and shares (2) holding assets in the form of cash (3) creation of immovable property (4) assets in the form of jewellery
Last Answer : (2) holding assets in the form of cash Explanation: Liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in ... than other assets, in Keynesian theory based on motives of transactions, precaution, and speculation.
Description : Rate of interest is determined by - (1) The rate of return on the capital invested (2) Central Government (3) Liquidity preference (4) Commercial Banks
Last Answer : (3) Liquidity preference Explanation: According to the classical view, rate of interest is determined by the interaction of supply of and demand for capital. Thus this theory is popularly called ... higher shall be the rate of interest. The liquidity preference constitutes the demand for money.
Last Answer : (4) Commercial Banks Explanation: Bank Rate is determined by the Reserve Bank of India. The rate of interest is determined by the commercial banks in India. As per RBI notification, banks are free to determine rates of interest subject to BPLR and spread guidelines.
Description : The Liquidity Preference Theory of Interest was propounded by : (1) J.M. Keynes (2) David Ricardo (3) Alfred Marshall (4) Adam Smith
Last Answer : (1) J.M. Keynes Explanation: In macroeconomic theory, liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John May-nard Keynes in his book ... Money (1936) to explain determination of the interest rate by the supply and demand for money.
Last Answer : J.M. Keynes
Description : Rate of interest is determined by (1) The rate of return on the capital invested (2) Central Government (3) Liquidity preference (4) Commercial Banks
Last Answer : Liquidity preference
Description : Which of the following has the highest cost of capital? A. Loans B. Equity shares C. Bonds D. Preference shares
Last Answer : B. Equity shares
Description : A high Statutory Liquidity Ratio (SLR) (1) restricts lending (2) increases supply of cash (3) provides funds to the state (4) increases the strength of the banks
Last Answer : (1) restricts lending Explanation: Statutory Liquidity Ratio refers to the amount that the commercial banks require to maintain in the form gold or government approved securities before providing credit to ... , suck liquidity in the market, to tighten the measure to safeguard the customers' money.
Description : The ratio of a bank's cash holdings to its total deposit liabilities is called the - (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio
Last Answer : (2) Cash Reserve Ratio Explanation: Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the avail-able amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system.
Last Answer : restricts lending
Description : The ratio of a bank’s cash holdings to its total deposit liabilities is called the (1) Variable Reserve Ratio (2) Cash Reserve Ratio (3) Statutory Liquidity Ratio (4) Minimum Reserve Ratio
Last Answer : Cash Reserve Ratio
Description : Net Assets of D.Co. for Purchase Consideration worth Rs. 4,00,000. At the time of absorption, the company has paid 32,000 equity shares each of Rs.10 each at 10% premium, then remaining cash will be - (A) Rs. 48,000 (B) Rs. 84,000 (C) Rs. 80,000 (D) Rs. 90,000
Last Answer : (A) Rs. 48,000
Description : If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... (A) Cash (B) Debenture (C) Pref. share (D)Assets
Last Answer : (A) Cash
Description : Which of the following is not a cash inflow? a) Decrease in debtors b) Issue of shares c) Decrease in creditors d) Sale of fixed assets
Last Answer : c) Decrease in creditors
Description : Bonus shares can be issued by a company A. Out of the Reserves created by revaluation of fixed assets B. Out of share premium not collected in cash C. Without any provision for it in the Articles of Association of the company D. Out of free reserves built out of genuine profit
Last Answer : D. Out of free reserves built out of genuine profit
Description : If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... (A)Cash (B)Debenture (C)Pref. share (D)Assets
Last Answer : (A)Cash
Description : Which of the following is not a cash inflow? A. Decrease in debtors B. Issue of shares C. Decrease in creditors D. Sale of fixed assets
Last Answer : C. Decrease in creditors
Description : Disinvestment of shares means– (A) To sale the shares of private company to public (B) To sale the shares of public company to the public (C) To sale the shares of Government company to the public (D) To sale of shares by holding company to its subsidiary company
Last Answer : Answer: To sale the shares of public company to the public
Description : Identify the incorrect statement in connection with working capital management. A. Long-term funds are more expensive than short-term funds but also riskier B. The objectives of ... fluctuating current assets E. Aggressive financing policies increase profitability at the cost of higher risk
Last Answer : A. Long-term funds are more expensive than short-term funds but also riskier
Description : In deciding the optimal level of current assets for the firm, management is confronted with . A. a trade-off between profitability and risk B. a trade-off between liquidity and risk C. a trade-off between equity and debt D. a trade-off between short-term versus long-term borrowing
Last Answer : A. a trade-off between profitability and risk
Description : The relationship between current assets and current liabilities is important in evaluating a company's a. profitability. b. liquidity. c. market value. d. accounting cycle.
Last Answer : b. liquidity.
Description : On a classified balance sheet, current assets are customarily listed a. in alphabetical order. b. with the largest dollar amounts first. c. in the order of liquidity. d. in the order of acquisition.
Last Answer : c. in the order of liquidity.
Description : Current ratio shows----- a) The change in gross profit b) The working capital position c) The liquidity of assets d) The change in net profit
Last Answer : b) The working capital position
Description : Coverage of fixed assets by shareholder’s equity is a good tests of---------------- a) solvency b) liquidity c) Activity d) profitability
Last Answer : a) solvency
Description : ________ is characteristic of liquidity ratios. (a) Organization's ability to meet its current debt obligations (b) Organization's use of debt to finance its assets and whether it's able to meet the interest ... the debt ;(c) How efficiently the firm is using its assets ;(d) None of given options
Last Answer : (a) Organization’s ability to meet its current debt obligations
Last Answer : According to Section 9 of the Specific Remedies Act.
Description : Which of the following would be construed as a reasonable restriction of the right to freedom'? (1) When the state disallows a candidate from securing votes in the name of religion (2) When ... of Nagaland disallows temporary residents to buy immovable property in Nagaland. (4) All of the above
Last Answer : (4) All of the above
Description : Which one of the following is known as the ‘immovable property’ in the cell? (1) Carbohydrate (2) Fat (3) Protein (4) Nucleic acid
Last Answer : (4) Nucleic acid Explanation: Immovable property is an immovable object, an item of property that cannot be moved without destroying or altering it – property that is fixed to the earth, such as land or a house.
Description : If the property ordered to be attached is a immovable property, the attachment under this section shall be made a) By taking possession b) By the appointment of a receiver c) By an order in writing ... any one on his behalf d) By all or any two of such methods as the court thinks fit
Last Answer : d) By all or any two of such methods as the court thinks fit
Description : When the property ordered to be attached is immovable a) When endorsed by the District magistrate concerned b) In case land paying revenue to the State government be made through the collector of the district in which the land is situate c) Both the A & B. d) None of these
Last Answer : b) In case land paying revenue to the State government be made through the collector of the district in which the land is situate
Description : When a proclamation issued against absconded person fails to appear court may a) Issue a order attachment of any movable property b) Issue a order attachment of any immovable property c) Issue a order attachment of any property movable or immovable or both d) Only A
Last Answer : c) Issue a order attachment of any property movable or immovable or both
Description : When a term serious loss occurring to immovable property of department a. all loss exceeding Rs 1000/- b. all loss exceeding Rs 5000/- c. all loss exceeding RS 10000/
Last Answer : a. all loss exceeding Rs 1000/
Description : Credit Card Fraud includes: a) Credit cards are illegally get and used to get movable or immovable property b) Unauthorized and illegal use of credit cards c) Both of Above d) None of These
Last Answer : c) Both of Above
Description : The term goods for the purpose of sale of goods act does not include a) actionable b)money c) immovable property d)all of these
Last Answer : d)all of these
Last Answer : Nucleic acid
Description : In the balance sheet, ending merchandise inventory is reported a. in current assets immediately following accounts receivable. b. in current assets immediately following prepaid expenses. c. in current assets immediately following cash. d. under property, plant, and equipment.
Last Answer : a. in current assets immediately following accounts receivable.
Description : Which one of the following securities cannot be issued by a Public Limited Company in India ? (A) Participating preference shares (B) Redeemable preference shares (C) Deferred shares (D) Debentures.
Last Answer : Answer: Deferred shares
Description : Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors
Last Answer : Answer: Equity Shareholders
Description : What is Capital Redemption Reserve Account available for ? (A) Redemption of redeemable preference shares (B) Redemption of redeemable debentures (C) Reorganization of share capital (D) Issue of fully paid bonus shares
Last Answer : Answer: Issue of fully paid bonus shares
Description : The return on investment (ROI) may be calculated as A. Net profit before interest, tax and dividend / Capital employed B. Net profit after interest, tax and dividend / Shareholder's fund C. ( Net profit - preference dividend )/ No. of equity shares D. Return on Investment / Net profit ratio
Last Answer : A. Net profit before interest, tax and dividend / Capital employed
Description : The dividend on equity shares is only paid when dividend on ------- has already been paid. A. Debenture B. Preference Shares C. Bond D. Equity Shares
Last Answer : B. Preference Shares
Description : Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not lessthan A. 2 year B. 3 years C. 6 years D. none of these
Last Answer : 2
Description : Investment in which of the following is most risky? A. Equity shares. B. Preference shares. C. Debentures. D. Land.
Last Answer : C. Debentures.
Description : Which of the following securities proves a burden on finances of the company, when company is not earning profits? A. Equity shares. B. Preference shares. C. Redeemable preference shares. D. Debentures.
Last Answer : D. Debentures.
Description : For the purpose of preparation of fund flow statement, fund means– (A) Total resources (B) Cash/bank balances (C) Current Assets (D) Working capital
Last Answer : Answer: Working capital
Description : Risk, as it relates to working capital, means that there is jeopardy to the firm for not maintaining sufficient current assets to . A. meet its cash obligations as they occur and take advantage ... above industry norms E. meet its cash obligations as they occur and support the proper level of
Last Answer : D. maintain current and acid-test ratios at or above industry norms
Description : Underwriting in terms of shares means 1. Agreeing to purchase shortfall of shares in a company in case of undersubscription 2. Selling shares at a discount 3. Purchasing property at less than market price 4. a and b 5. None of these
Last Answer : Agreeing to purchase shortfall of shares in a company in case of undersubscription
Description : The payback method for the measurement of return on investment (A) Gives a correct picture of profitability (B) Underemphasises liquidity (C) Does not measure the discounted rate of return (D) Takes into account the cash inflows after the recovery of investments
Last Answer : (C) Does not measure the discounted rate of return