Securities with lower default risk and having highest credit quality are assigned rating of

A. double B
B. triple B
C. triple A
D. double A
✅ The correct answer is option C.
Securities with lower default risk and having highest credit quality are assigned rating of triple A. AAA is the highest possible rating that may be assigned to an issuer’s bonds by any of the major credit rating agencies. AAA-rated bonds boast a high degree of creditworthiness, because their issuers are generally easily able meet their financial commitments and they consequently run lower risks of defaulting.

Treasury bills are issued on

A. treasury basis
B. corporate basis
C. premium basis
D. discount basis
✅ The correct answer is option D.
Treasury bills are issued on discount basis. Treasury Bills, also known as T-bills are the short-term money market instrument, issued by the central bank on behalf of the government to curb temporary liquidity shortfalls. These do not yield any interest, but issued at a discount, at its redemption price, and repaid at par when it gets matured.

393. Which of the following is a consideration when assessing the appropriateness of a strategy?

A. Synergy
B. Stakeholders
C. Competitive advantage
D. Resources
✅ The correct answer is option D.
Resources is a consideration when assessing the appropriateness of a strategy. A resource is a source or supply from which a benefit is produced and that has some utility. Resources can broadly be classified upon their availability — they are classified into renewable and non-renewable resources.

On an accounting report of cash flows an “increase (decrease) in cash and cash equivalents” shows

A. a cash flow from operating activities
B. a cash flow from investing activities.
C. a cash flow from financing activities.
D. none of above.
✅ The correct answer is option D.
A Cash flow statement shows inflow and outflow of cash and cash. Among the given options it shows none of the above.

Technique by which companies reduce cost of transaction services and results in increased efficiency is classified as

A. economies of cost
B. economies of scale
C. economies of efficiency
D. economies of transaction
✅ The correct answer is option B.
Technique by which companies reduce cost of transaction services and results in increased efficiency is classified as economies of scale. Economies of scale are cost reductions that occur when companies increase production. The fixed costs, like administration, are spread over more units of production. Sometimes the company can negotiate to lower its variable costs as well.

Foreign bonds issued in United States financial institutions are classified as

A. bull dog bonds
B. bull cat bonds
C. Yankee bonds
D. samurai bonds
✅ The correct answer is option C.
Foreign bonds issued in United States financial institutions are classified as Yankee bonds. Yankee bonds are bonds issued in the U.S. bond market by a foreign entity, and they are denominated in U.S. dollars. Governments, companies, and other entities issue Yankee bonds.