arm source of finance excludes dank Credit blank over draft Debentures All of the above 18. When a bank allows his customer to borrow money up to certain limit against the security of the commodity, it is known as a) Cash credit b) Bank over draft c) Discounting of bills d) All of the above 19. Which of the following is not an internal source of finance? a) Retained Earnings b) Bonds c) Depreciation d) Reserves and surplus 20. The cost of holding inventory is known as, a) Carrying Cost b) Ordering Cost c) Depreciation d) Sunk Cost 21. Which of the following statements is not true? a) Finance is referred as art and science of managing funds and money. b) Finance excludes financial services and financial instruments. c) Finance is considered to be the life blood of business. d) Finance is called as provision of money at the time it is required 22. Which of the following is an activity to be undertaken while making decisions regarding investment? a) Estimate the long term financial requirement of the business concern. b) Estimate the short term requirement of the business concern. c) Identify the various sources of finance. d) Determine the best project by performing capital budgeting techniques. 51 Page