McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Banking and Insurance (BBI) , Bachelor of Commerce (B Com) .
Chapters
| 51. |
Which of the following is a technique that helps the exporter to sell the receivables to any bank or financial institution without recourse? |
| A. | forfeiting |
| B. | leading & lagging |
| C. | derivatives |
| D. | netting |
| Answer» A. forfeiting | |
| 52. |
Money market financial services not include: |
| A. | bill discounting |
| B. | merchant banking |
| C. | leasing |
| D. | securitization |
| Answer» B. merchant banking | |
| 53. |
Factoring involves: |
| A. | providing short term loan |
| B. | providing long term loan |
| C. | financing of export receivables |
| D. | management of receivables of borrower |
| Answer» D. management of receivables of borrower | |
| 54. |
The tools of treasury management does not include: |
| A. | foreign exchange management |
| B. | cash management |
| C. | receivable management |
| D. | risk management |
| Answer» D. risk management | |
| 55. |
Under which type of bank borrowing can a borrower obtain credit from a bank against its bills? |
| A. | letter of credit |
| B. | cash |
| C. | purchase or discounting of bills |
| D. | working capital loan |
| Answer» C. purchase or discounting of bills | |
| 56. |
The factors that affect dividend policy are: |
| A. | tax consideration |
| B. | privatization |
| C. | foreign investment |
| D. | working cash flow |
| Answer» A. tax consideration | |
| 57. |
To financial analysts, "working capital" means the same thing as __________. |
| A. | total assets |
| B. | fixed assets |
| C. | current assets |
| D. | current assets minus current liabilities. |
| Answer» C. current assets | |
| 58. |
Which of the following would be consistent with an aggressive approach to financing working capital? |
| A. | financing short-term needs with short-term funds. |
| B. | financing permanent inventory buildup with long-term debt. |
| C. | financing seasonal needs with short-term funds. |
| D. | financing some long-term needs with short-term funds. |
| Answer» D. financing some long-term needs with short-term funds. | |
| 59. |
Which of the following would be consistent with a conservative approach to financing working capital? |
| A. | financing short-term needs with short-term funds. |
| B. | financing short-term needs with long-term debt. |
| C. | financing seasonal needs with short-term funds. |
| D. | financing some long-term needs with short-term funds. |
| Answer» B. financing short-term needs with long-term debt. | |
| 60. |
-Which of the following would be consistent with a hedging (maturity matching) approach to financing working capital? |
| A. | financing short-term needs with short-term funds. |
| B. | financing short-term needs with long-term debt. |
| C. | financing seasonal needs with long-term funds. |
| D. | financing some long-term needs with short-term funds. |
| Answer» A. financing short-term needs with short-term funds. | |
| 61. |
The amount of current assets that varies with seasonal requirements is referred to as __________ working capital. |
| A. | permanent |
| B. | net |
| C. | temporary |
| D. | gross |
| Answer» C. temporary | |
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