Engineering Economics(Engineering > Civil Engineering ) Questions and Answers
Question 1. A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries.
Mortgage bond
Joint bond
Security bond
Collateral trust bond
Explanation:-
Answer: Option D. -> Collateral trust bond
Question 2. What is a measure of the average speed with which accounts receivable are collected?
Current ratio
Quick ratio
Acid test ratio
Receivable turnover
Explanation:-
Answer: Option D. -> Receivable turnover
Question 3. What is the change in cost per unit variable change called?
Variable cost
Incremental cost
Fixed cost
Supplemental cost
Explanation:-
Answer: Option B. -> Incremental cost
Question 4. What refers to the saving which takes place because goods are not available for consumption rather than consumer really want to save?
Compulsory saving
Consumer saving
Forced saving
All of the above
Explanation:-
Answer: Option C. -> Forced saving
Question 5. Cash money and credit necessary to establish and operate an enterprise are generally called ______.
Capital
Funds
Assets
Liabilities
Explanation:-
Answer: Option A. -> Capital
Question 6. What is an index of short-term paying ability?
Price-earnings ratio
Current ratio
Profit margin ratio
Gross margin
Explanation:-
Answer: Option B. -> Current ratio
Question 7. Which one of the following statements is correct?
The number of years required to recover the initial cash investment in a project, is called Pay Back period (PBP)
The discount rate that equates the present value of the expected Net Cash Flows (CFs) with the Initial Cash Outflow (ICO) is known as internal rate of return
The present value of the proposal's net cash flows, less the proposal's initial cash outflow is known as the Net Present Value (NPV)
All of these
Explanation:-
Answer: Option D. -> All of these
Question 8. If a seller recovers his capital along with accumulated compensating interest not in one single lump-sum payment but in periodical equal payments, over time:
Capital Recovery Annuity fs availed
Present work Annuity is availed
Sinking Fund Annuity is availed
Sinking Fund Annuity is availed
Explanation:-
Answer: Option A. -> Capital Recovery Annuity fs availed
Question 9. What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest?
Effective rate of interest
Nominal rate of interest
Compound interest
Simple interest
Explanation:-
Answer: Option C. -> Compound interest
Question 10. What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country?