MISCELLANEOUS EXERCISE - 1 -Choose the correct alternative.

1. An agent who gives guarantee to his principal that the party will pay the sale price of goods is called
a. Auctioneer          b. Del Credere Agent          c. Factor          d. Broker       

2. An agent who is given the possession of goods to be sold is known as
a. Factor         b. Broker      c. Auctioneer         d. Del Credere Agent

3. The date on which the period of the bill expires is called
a. Legal Due Date      b. Grace Date       c. Nominal Due Date      d. Date of Drawing

4. The payment date after adding 3 days of grace period is known as
a. The legal due date         b. The nominal due date       c. Days of grace       d. Date of drawing

5. The sum due is also called as
a. Face value         b. Present value       c. Cash value          d. True discount

6. P is the abbreviation of
a. Face value          b. Present worth       c. Cash value       d. True discount

7. Banker’s gain is simple interest on
a. Banker’s discount        b. Face Value      c. Cash value      d. True discount

8. The marked price is also called as
a. Cost price          b. Selling price       c. List price        d. Invoice price

9. When only one discount is given then
a. List price = Invoice price       b. Invoice price = Net selling price      c. Invoice price = Cost price      d. Cost price = Net selling price

10. The difference between face value and  present worth is called
a. Banker’s discount     b. True discount      c. Banker’s gain     d. Cash value