n NISM Certifications
XV NISM Series XV
Medium

Which of the following is an example of capital budgeting?

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Managing working capital

  2. Investing in new machinery

    Correct answer

  3. C

    Issuing short-term debt

  4. D

    Dividend payment

Why this is the answer

Capital budgeting involves long-term investment decisions in assets or projects that generate future returns. Working capital management, debt issuance, and dividends are operational or financing decisions.

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