Financial policy is evaluated by which of the following?

Related Mcqs:

1. In financial markets, period of maturity less than one year of financial instruments is classified as________________?

   A. Short-term
   B. Long-term
   C. Intermediate term

2. In financial markets, period of maturity within one to five years of financial instruments is classified as_________________?

   A. Short-term
   B. Long-term
   C. Intermediate term
   D. Capital term

3. Financial security kept by non-financial corporations is____________________?

   A. Deposit cheque
   B. Distribution cost
   C. Short term treasury bills
   D. Short term capital cost

4. In financial markets, period of maturity more than five years of financial instruments is classified as___________________?

   A. Intermediate term
   B. Capital term
   C. Short-term
   D. Long-term

5. Which of the following strategy belongs to restrictive policy regarding size of investments in current assets?

   A. To maintain a high ratio of current assets to sales
   B. To maintain a low ratio of current assets to sales
   C. To less short-term debt and more long-term debt
   D. To more short-term debt and less long-term debt

6. Which of the following ratios are intended to address the firm’s financial leverage?

   A. Liquidity Ratios
   B. Long-term Solvency Ratios
   C. Asset Management Ratios
   D. Profitability Ratios

7. Which of the following set of ratios relates the market price of the firm’s common stock to selected financial statement items?

   A. Liquidity Ratios
   B. Leverage Ratios
   C. Profitability Ratios
   D. Market Value Ratios

8. The Board of Directors sets company-wide policy and advices the CEO and other senior executies, who manage the company’s:

   A. Managerial activities
   B. Year-to-Year activities
   C. Day-to-Day activities
   D. Financial activities

9. Federal Reserve policy and federal surplus or deficit of budget affect the____________?

   A. Cost of production
   B. Cost of money
   C. Opportunity cost
   D. Inflation risk

10. The financial institutions having loans swapped for bonds can sell all the bonds in ___________?

    A. under-developed markets
    B. developed markets
    C. primary markets
    D. secondary markets