Question
1. Which of the following statements is false? Select one: a. The accounting return on investment is deficient as a technique of investment evaluation as
1. Which of the following statements is false?
Select one:
a. The accounting return on investment is deficient as a technique of investment evaluation as it uses accounting data, not cash flows.
b. The accounting return on investment and payback methods are deficient as techniques of investment evaluation as they do not adequately consider the time value of money.
c. Accounting return on investment is consistent with owner wealth maximisation.
d. The accounting return on investment and payback methods are simple to calculate.
e. The payback method ignores cash flows that arise after the payback period.
2.The lender of last resort role provided by the central bank had the following result:
Select one:
a. Initially the banking system became riskier.
b. Generally, banks played off the situation by lowering their reserve ratios.
c. The great depression of 1929.
d. Guaranteed the safety and soundness of the financial system.
e. B and D above.
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