[noobmaster69]

ques no 2 we had to choose two options same goes with que no 5 there was 1&2,1-2-3,1–2-3-4, neither similar pattern

[noobmaster69]

struggled with SEC A theories alot . Guys what is the correct ans of these ..i want to see if i choose correct ans
I dont remember alot but some of the ques were

1.What role would money market have in LC arrangement?
a)issuing of bankers acceptances
b)initial arrangement of lc
c)acceptance of LC
d)discounting the banker’s acceptance

2.Function of stock maket?
a)smooth share price fluctuaations
b)facilitate trading of commercial paper of public companies
c)determine fair price for assets
d)facilitate trading of issued shares of public company

3.Two value for money objective for Not for profit orgnization
a)reduce administrative expn
b)publish financial results to attract more funds
c)increase tution fees
d)investing in information tech to provide facilities for more students

4.according to interest rate parity theory which two (sec B que)
a)increase in dollor proceeds from euro invoice
b)compensatory increase in dollar inflation rate
c)devaluation of dollar in relation to the euro
d)opportunities to make arbitrage gains on foreign exchange transaction

5.disadvantage of currency future contract (sec B ) i forgot the number options but these were the points
a)contract may not exactly match the transaction being hedged
b)future contract has to be exercised on a specific date
c)outcome f currency future hedge not precisely known due to basic risk
d)contract is inflexible & doesnot allow hedging company to take advantage of favourable exchange rate movement

6.not an element of Working capital
a)trade credit
b)cash
c)sales
d)inventory

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