Question : As the number of investments made by the firm increases, its internal rate of return

Option 1: declines due to diminishing marginal productivity

Option 2: decline because the market rate of interest will fall, ceteris paribus

Option 3: increase to compensate the firm for the current consumption foregone

Option 4: increase because the level of savings will fall

Question : Which of these statements is true?

Option 1: Under competitive asset market conditions, the price of a bond must always be equal to its present value in equilibrium.

Option 2: Under competitive asset market conditions, the price of a bond must be less than its present value to benefit the seller.

Option 3: Under competitive asset market conditions, the price of a bond must exceed its present value to benefit the buyer.

Option 4: Under competitive asset market conditions, the present value must exceed the price of a bond to benefit the seller.

Question : The value added of a firm is calculated as___________.

Option 1: value of production of the firm - value of intermediate goods used by the firm.

Option 2: value of production of the firm + value of capital goods used by the firm.

Option 3: value of production of the firm / value of intermediate goods used by the firm.

Option 4: value of production of the firm + value of intermediate goods used by the firm.

Question : The effective annual Rate of Interest corresponding to a nominal rate of interest of 13% per annum payable half-yearly is:

Option 1: 26%

Option 2: 26.85%

Option 3: 13%

Option 4: 13.42%

Question : A sum of Rs. 3000 becomes Rs. 6000 when invested in a scheme of simple interest. If the annual rate of interest and the number of years for which the sum was invested are the same, then what is the annual rate of interest?

Option 1: 5%

Option 2: 20%

Option 3: 10%

Option 4: 15%