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Everyday Science Questions & Answers Section 95

Ques No.1: The following are important functions of financial markets: i) Source of financing. ii) Provide Liquidity. iii) Reduce Risk. iv) Source of information

Ans: I,II,III and IV

Ques No.2: The sale of financial assets is also referred to as the

Ans: Financing Decision

Ques No.3: The construction of new manufacturing plant is also referred to as the

Ans: Investment decision

Ques No.4: According to the Efficient Market Hypothesis, which from the following is NOT true?

Ans: Analysis predicts price pattern

Ques No.5: According to the weak form of market efficiency__________past information is included in the stock price.

Ans: All

Ques No.6: We say about a particular investment that it is risky, because

Ans: Its Returns are uncertain

Ques No.7: In Finance, risk is calculated by calculating the

Ans: Standard Deviation

Ques No.8: The sale of bonds by a country or a corporation is referred to as the

Ans: Financing Decision

Ques No.9: Generally, a corporation is owned by the: i) Managers. ii)Board of Directors. iii) Stock Holders. iv)Stake holders.

Ans: III only

Ques No.10: A firm's investment decision is also called the

Ans: Capital budgeting decision

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