Maturity Risk Premium Notes Questions with Answers PDF Download - 27

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

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

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

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

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