21. Sale of a bond by a country or a firm is known as
(A) offering loan
(B) financing decision
(C) Investment decision
(D) capital structure
22. Which from the following is NOT an example of intangible assets?
(A) Trademarks
(B) Patents
(C) Buildings
(D) Technical expertise
23. The following are the examples of financial assets except?
(A) Stocks
(B) Bank loan
(C) Bond
(D) Raw material
24. The following are important functions of financial markets:
I. Source of financing
II. Provide liquidity
III. Reduce risk
IV. Source of information
(A) I and IV only
(B) II and III only
(C) I, II and III only
(D) I, II, III and IV
25. The sale of financial assets is also referred to as the
(A) Capital decision
(B) CFO decision
(C) Financing decision
(D) Investment decision
26. The construction of new manufacturing plant is also referred to as the
(A) Capital decision
(B) CFO decision
(C) Financing decision
(D) Investment decision
27. According to the Efficient Market Hypothesis, which from the following is NOT true?
(A) Analysis predicts price pattern
(B) No money machines
(C) No arbitrage opportunities
(D) Security prices reflect true underlying value of assets
28. According to the weak form of market efficiency __________ past information is included in the stock price.
(A) no
(B) all
(C) marginal
(D) only a few
29. We say about a particular investment that it is risky, because
(A) it is dangerous
(B) it has low returns
(C) its returns are uncertain
(D) its raw material is unavailable
30. In Finance, risk is calculated by calculating the
(A) mean
(B) variance
(C) standard deviation
(D) kurtosis