Commerce Multiple Choice Questions

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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
(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 ☑

Commerce MCQs

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