Financial Management

✅ The correct answer is D.
Tax free bonds issue for welfare by industrial agencies or pollution control agencies are classified as development bonds and pollution control bonds.

✅ The correct answer is B.

✅ The correct answer is B.
In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in decreased cash.

✅ The correct answer is A.
Tendency of people to blame failure on bad luck but given tribute of success to themselves is classified as self-attribution bias. Self-attribution bias is a long-standing concept in psychology research and refers to individuals’ tendency to attribute successes to personal skills and failures to factors beyond their control.

✅ The correct answer is A.
Funds which are used as an interest-bearing checking accounts are classified as money market funds. A money market fund is a kind of mutual fund that invests only in highly liquid instruments such as cash, cash equivalent securities, and high credit rating debt-based securities with a short-term, maturity—less than 13 months.

✅ The correct answer is A.
In capital asset pricing model, characteristic line is classified as regression line. The Regression Line is the line that best fits the data, such that the overall distance from the line to the points (variable values) plotted on a graph is the smallest.

✅ The correct answer is D.
Net Cash Flow = Net income – Non cash revenue
= 950000 – 500000 = Rs. 450000.

✅ The correct answer is B.
Expected dividends in each year and price investor expecting to get at selling of stock are two components of expected cash flows. The cash flow an investor or company expects to realize from a project before that project begins.

✅ The correct answer is B.
An unsecured bond that provides no lien against property as security for bond obligation is classified as debenture. A debenture is a type of debt instrument that is not secured by collateral and usually has a term greater than 10 years. Debentures are backed only by the creditworthiness and reputation of the issuer. Both corporations and governments frequently issue debentures to raise capital or funds.

✅ The correct answer is A.
A bond’s interest rate is related to the current prevailing interest rates and the perceived risk of the issuer. When interest rates are less than the coupon rate, the bond can be sold at a premium (higher than the face value). When current interest rates are greater than a bond’s coupon rate, the bond will sell below its face value at a discount.