$1-$Which of the following statements best defines exchange rate?

The price paid to borrow debt capital.

The actual rate charged on a loan that compensates investors for postponing consumption, inflation, and risk.

The number of units of a given currency that can be purchased for one unit of another currency.

The nominal, risk$-$adjusted rate of return that is actually published in financial publications.

The rate of interest that offsets inflation and provides the required real return on a riskless investment.

$2-$The cost of capital is$...$

The rate of return required by the equity holders alone.

The discount rate used to determine the viability of a project.

The maximum return provided to investors.

The internal rate of return on a project.

$3-$Which of the following is true about stocks?

They are always the best investment for a risk adverse investor.

A company$$s stock price represents the present value of the expected future cash flows.

Stocks are less risky than the long$-$term bonds of the company.

Stock and equity establish the operating equity of the company.

$4-$All of the statements below for managing risk in finance are true EXCEPT...

Risk must be avoided to earn high levels of return.

Risk affects earnings and profits of companies.

Risk impacts shareholders value.

Risk affects cash flow of companies.

$5-$Which of the following is the sum of present values of all future cash flows minus the initial investment?

Net present value $($NPV$).$

Interest investment rate $($IIR$).$

Return on investment $($ROI$).$

Internal rate of return $($IRR$).$

$6-$Financial ratios can be used for all of the following EXCEPT,,,

To compare company$$s performance with the rest of the industry.

To determine company$$s ability to generate positive cash flow or profit.

To compare with your competitors or similar companies in the same period.

To determine company$$s ability to meet debt service obligations.