Q. Which of the following is the safest investment?
(A) Treasury bills
(B) Government bond
(C) Corporate bond
(D) Stocks
The answer is: (A) Treasury bills ☑
Q. Net Present Value (NPV) is calculated as
(A) cash inflow – cash outflow
(B) cash outflow – cash inflow
(C) PV of cash inflow – PV of cash outflow
(D) PV of cash outflow – PV of cash inflow
The answer is: (C) PV of cash inflow – PV of cash outflow ☑
Q. IMF provides assessments of latest public finance developments in its
(A) Fiscal Monitor Reports
(B) World Economic Outlook Reports
(C) Global Financial Stability Reports
(D) None of these
The answer is: (A) Fiscal Monitor Reports ☑
Q. The ratio between amount of profit and investment is known as
(A) NPV
(B) opportunity cost
(C) risk premium
(D) rate of return
The answer is: (D) rate of return ☑
Q. In Finance, risk is calculated by calculating the _____ of possible outcomes.
(A) mean
(B) standard deviation
(C) variance
(D) kurtosis
The answer is: (B) standard deviation ☑