Maturity Risk Premium Notes Questions with Answers PDF Download – Test 27

MCQ 131: The risk of fall in income due to fall in interest rates in future is classified as:

1. income risk
2. investment risk
3. reinvestment risk
4. mature risk

MCQ 132: In capital budgeting, the cost of capital is used as discount rate and is based on pre-determines:

1. cost of inflation
2. cost of debt and equity
3. cost of opportunity
4. cost of transaction

MCQ 133: The economists consider the effects of the started project on other parts of company or on the environment of the company is called:

1. externalities
2. foreign effects
3. weighted effects
4. opportunity effects

MCQ 134: The situation in which the company replaces existing assets with new assets is classified as:

1. replacement projects
2. new projects
3. existing projects
4. internal projects

MCQ 135: The conglomerates that combine many financial institutions within a single corporation are classified as:

1. preferred service corporations
2. commercial service corporations
3. financial services corporations
4. common service corporations