A businessman opportunity should be accepted if it has _____ net present value.
1.zero
2.positive
3.negative
4.constant
A company sent a job offer letter to a candidate on 2 May 2020. The candidate received the letter on 4 May 2020. The communication of offer is completed on
1.2 May 2020
2. 4 May 2020
3. 3 May 2020
4.2 or 4 May 2020
A company sent a job offer letter to a candidate. The candidate sent the acceptance letter on 2 May 2020 and the company received the letter on 4 May 2020. The communication of acceptance is completed on
1.2 May 2020
2.4 May 2020
3. 3 May 2020
4.2 or 4 May 2020
A letter of credit is opened (or issued) on behalf of a/an
1.exporter
2.importer
3.buying agent
4.bank
A person or a firm that brings buyers and sellers together and receive a commission when the deal is done, is called
1.agent
2.broker
3.retailer
4.underwriter
A shareholder in a public limited company can sell his/her shares by
1.advertising them in a newspaper
2.asking the company to buy them back
3.offering them on the stock exchange
4.listing them online
An asset that pays a fixed amount of cash at regular intervals for a specified number of years is known as
1.annuity
2.perpetuity
3.simple interest
4.compound interest
An asset that pays the regular interest payments and repay the original amount at the maturity is known as
1.stock
2.share
3.bond
4.mortgage
An increase in supply _____ the price and _____ the quantity demanded.
1.lowers, raises
2.raises, lowers
3.lowers, lowers
4.raises, raises
An investment is believed to be risky if
1.it is dangerous
2.it has low returns
3.its returns are uncertain
4.its raw material is unavailable
An investment should be accepted if
1.Rate of Return > Opportunity Cost
2.Rate of Return < Opportunity Cost
3.Rate of Return = Opportunity Cost
4.A, B and C are irrelevant
An investment should be accepted if its Net Present Value (NPV) is
1.0
2.1
3.positive
4.negative
At which stage the production is completed?
1.when product is manufactured
2.when product is used by the consumer
3.when product reach the consumer
4.when product reach the retailer
Central Depository Company of Pakistan is regulated by
1.Finance Ministry
2.State Bank of Pakistan
3.Federal Board of Revenue
4.Securities and Exchange Commission of Pakistan
Consider a world without scarcity of resources. Then what would be the consequences?
1.All prices would be zero
2.Markets would be unnecessary
3.Economics would no longer be a useful subject
4.All of the above
Exports are _____ while imports are _____.
1.debits, credits
2.credits, debits
3.assets, liabilities
4.liabilities, assets
GATT is an abbreviation for
1.General Agreement on Transport and Trade
2.General Agreement on Tariffs and Trade
3.Generally Accepted Telegraphic Transfer
4.Generally Accepted on Trade and Telegraph
If the Pakistani rupee gains strength, what from the following statement would NOT be true?
1.Imports would be cheaper
2.Exports would be expensive
3.foreign investment in Pakistan would be more attractive
4.foreign investment in Pakistan would be less attractive
IMF provides assessments of latest public finance developments in its
1.Fiscal Monitor Reports
2.World Economic Outlook Reports
3.Global Financial Stability Reports
4.None of these
In a monopolistic competition, a business obtains its maximum-profit position where
1.MR > MC
2.MR < MC
3.MR = MC
4.MR + MC = 1
In Finance, risk is calculated by calculating the _____ of possible outcomes.
1.mean
2.standard deviation
3.variance
4.kurtosis
International Monetary Fund (IMF) provides loans to member countries that are experiencing problems with
1.excessive loans
2.balance of payments
3.poverty
4.infrastructure development
Net Present Value (NPV) is calculated as
1.cash inflow - cash outflow
2.cash outflow - cash inflow
3.PV of cash inflow - PV of cash outflow
4.PV of cash outflow - PV of cash inflow
Professionals employed by insurance companies or pensions providers to calculate factors such as life expectancy and likely payouts are known as
1.Actuary
2.Accountant
3.Chartered Accountant
4.CFO
Raw materials that are remaining at the end of the reporting period are treated as
1.current assets
2.fixed assets
3.expenses
4.liabilities
Selling bonds is a way to
1.paying debt
2.improve exchange rate
3.lend loans
4.obtain loans
Shares of a public company are usually traded on a
1.central bank
2.stock exchange
3.securities & Exchange Commission
4.hedge fund
The fundamental concept of Economics about resources is that the resources are
1.equally distributed
2.unequally distributed
3.scarce
4.unlimited
The headquarter of World Trade Organization (WTO) is located in
1.London
2.New York
3.Washington
4.Geneva
The IMF was established in _____ at the Bretton Woods Conference in the United States.
1.1944
2.1945
3.1946
4.1947
The IMFs primary mission is to ensure the stability of the international
1.money exchange system
2.money exchange rate
3.monetary policy
4.monetary system
The Internal Rate of Return (IRR) is the rate of discount that makes Net Present Value (NPV)
1.zero
2.one
3.positive
4.negative
The ratio between amount of profit and investment is known as
1.NPV
2.opportunity cost
3.risk premium
4.rate of return
The return that is forgone by investing in a project instead of investing in a financial market at the same level of risk is known as
1.capital saving
2.opportunity cost
3.opportunity saving
4.internal rate of return
The selling price of some goods is $1500 and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?
1.$1000
2.$1200
3.$1300
4.$1500
The World Bank has two goals: to promote shared prosperity in a sustainable way, and to
1.end extreme poverty
2.reduce difference between rich and poor
3.invest on health and education
4.combat deadliest diseases
The World Bank provides loans and grants to pursue
1.balance of payments
2.capital projects
3.exports
4.education and health related projects
USMCA (United States-Mexico-Canada) free trade agreement has replaced
1.GATT
2.NAFTA
3.ECO
4.League of Nations
What document will be sent to a buyer when the buyer returns some damaged goods?
1.order
2.receipt
3.quotation
4.credit note
Which from the following derivative is not traded on exchanges?
1.Forward
2.Future
3.Bond
4.Option
Which from the following is NOT among essentials of a valid contract?
1.Consensus ad idem
2.More than two parties
3.Lawful consideration
4.Free consent
Which from the following risk is non-insurable?
1.faulty raw material
2.poor management
3.factory fire
4.vehicle accident
Which of the following is an example of a credit sale?
1.buying furniture with a debit card
2.exchanging a mobile with a new one
3.leasing land for one year
4.buying a car with a deposit and installments
Which of the following is not a function of a retailer?
1.offering after-sales services
2.exchanging faulty goods within warranty period
3.offering services to both consumer and wholesaler
4.providing a link between manufacturer and wholesaler
Which of the following is not a function of a warehouse?
1.Facilitate the distribution
2.Stockpiling
3.Manufacture goods
4.Provide storage
Which of the following is the safest investment?
1.Treasury bills
2.Government bond
3.Corporate bond
4.Stocks
Which of the following product is likely to be produced using division of labour?
1.Mud sculpture
2.Oil painting
3.Ceiling fan
4.A cup of coffee
Which source of financing is not available to a sole proprietor and a partnership?
1.bank loan
2.retained profit
3.trade credit
4.share issue
World Trade Organization (WTO) is the successor organization of
1.ECO
2.GATT
3.NAFTA
4.League of Nations
World Trade Organization (WTO) was established on 1 January
1.1993
2.1995
3.1997
4.1999