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- Which of the following statement(s) is/are true? (Select the correct answer from the options below the statements) (1) Forward contracts are binding (2) Forward contracts are flexible and can be renegotiated or cancelled at any time before the date of settlement (3) Forward contracts are prone to counterparty risks (1) only (1) and (2) (1) and (3) (1), (2) and (3)
- What is an interest rate that rises and falls with market rates of interest called? Select the correct answer from the options listed below Floating rate Semi-fixed rate Stepped rate Freedom rate
- Which of the following statement(s) is/are true? (Select the correct answer from the options below the statements) (1) A mortgage is a form of long term loan that is secured on an asset.typically land and property (2) Amortgage is a form of equity and is attached to non-current assets; typically land and property (3) A mortgage may be for a long period: 20 years or more (1) and (3) (1) only (1) and (2) (2) and (3)
- Which of the following statement(s) is/are true in the event of a high level of inflation? (Select the correct answer from the options below the statements) (1) Interest rates, wages and prices are being linked to a price index (2) The general population preferring to keep its wealth in non-monetary assets (3) The value of money is readily increased. (1) and (2) (1) only (1) and (3) (1), (2) and (3)
- Question 17 Which of the following statement(s) is true? (Select the correct answer from the options below the statements) (1) Rights issue aims to ensure that there is no 'dilution' of control (2) The new shares under rights issue are normally issued under the market price (3) There is a possibility that the existing shareholders do not exercise their rights to purchase new shares that have been issued (1) and (3) (1) only (1) and (2) (1),(2) and (3) 4 pts