Maturity Risk Premium Quiz PDF: Questions and Answers - 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