Question : What is a sovereign wealth fund?
Option 1: A fund created by a government to invest its excess revenue in financial assets
Option 2: A fund created by a corporation to invest in government bonds
Option 3: A fund created by a non-profit organization to invest in social welfare programs
Option 4: A fund created by a wealthy individual to invest in real estate
Correct Answer: A fund created by a government to invest its excess revenue in financial assets
Solution : The correct answer is (a). A fund created by a government to invest its excess revenue in financial assets.
A sovereign wealth fund (SWF) is a state-owned investment fund that is established by a government, typically fueled by surplus revenues from commodities, such as oil, natural gas, or minerals. The primary purpose of a sovereign wealth fund is to invest these excess funds in a diversified portfolio of financial assets, such as stocks, bonds, real estate, and other investment vehicles, with the goal of generating long-term returns and preserving wealth for future generations.
Sovereign wealth funds are commonly created by countries with significant reserves of foreign currency or revenue from natural resources. These funds can play various roles, such as stabilizing the economy, saving for future generations, supporting strategic industries, funding infrastructure projects, or diversifying the government's investment holdings.
Question : What is the purpose of a tax credit?
Option 1: To decrease the amount of taxes owed by an individual or corporation
Option 2: To increase the amount of taxes owed by an individual or corporation
Option 3: To decrease the amount of government spending on social welfare programs
Option 4: To increase the amount of government revenue
Question : What is the purpose of a capital budget?
Option 1: To fund ongoing operations of the government
Option 2: To fund major infrastructure projects
Option 3: To fund social welfare programs
Option 4: To fund military operations
Question : ----------------- is a fund earmarked for investment in fixed assets or already invested in fixed assets. An example of a Fixed Assets Fund is a Building Fund & Amount invested in fixed assets during the year is transferred to a Capital Fund.
Option 1: Capital fund
Option 2: Fixed assets fund
Option 3: Endowment Fund
Option 4: None of the above
Question : Case Study 13:
XYZ Corporation is a conglomerate planning to diversify its operations by entering the renewable energy sector.
Question :
XYZ Corporation is issuing bonds with a fixed interest rate and maturity period of 10 years to fund its renewable energy projects. What type of bonds are these?
Option 1: Convertible bonds
Option 2: Floating-rate bonds
Option 3: Zero-coupon bonds
Option 4: Corporate bonds
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