# Highway Engineering Questions and Answers – Highway Finance

«

This set of Highway Engineering Multiple Choice Questions & Answers (MCQs) focuses on “Highway Finance”.

1. The average annual highway cost for a road system may be summed up by __________
a) Ca=H+T+M+Cr
b) Ca=H+T+M-Cr
c) Ca=H+T
d) Ca=H
View Answer

Answer: a
Explanation: The average cost of the annual road system is the sum of all costs like average cost of highway administration, operation and maintenance and also the recovery fund.

2. The CRF denotes __________
a) Central Road Fund
b) Capital Recovery Fund
c) Capital Recovery Factor
d) Central Research Fund
View Answer

Answer: c
Explanation: The first cost of a capital improvement is converted into equivalent annual cost which is called capital recovery factor.

3. The Vs in average annual capital cost represents?
a) Savage value
b) Salvage value
c) Waste value
d) Usable value
View Answer

Answer: b
Explanation: Salvage is the income available after the structure has almost completed the life span.
Note: Join free Sanfoundry classes at Telegram or Youtube
advertisement
advertisement

4. If the principal is P and rate of interest is i and it has to be paid in n years then, the sum S is given by __________
a) P(1+i)
b) P(1-i)
c) P/I
d) P(1+i)n
View Answer

Answer: d
Explanation: The compound interest is calculated for every year and it’s leived on the preceding interest.

5. What is the first step in economic analysis?
a) Determine the AADT
b) Estimate growth rate
c) Assessment of traffic route
d) Estimate additional traffic
View Answer

Answer: a
Explanation: The average annual daily traffic is required for the completion of the remaining steps.
Take Highway Engineering Practice Tests - Chapterwise!
Start the Test Now: Chapter 1, 2, 3, 4, 5, 6, 7, 8, 9, 10

6. The method not used in economic analysis is __________
a) Annual cost
b) Rate of return
c) Benefit cost ratio
d) Floating car
View Answer

Answer: d
Explanation: The floating car method is a method that is used for the estimation of the traffic, whereas the remaining are methods of analysis of the cost.

7. The savings in annual road user costs, annual savings in accident costs and capital cost of Improvement are parameters used in __________
a) Annual cost method
b) Rate of return method
c) Benefit cost ratio
d) None
View Answer

Answer: b
Explanation: The transport laboratory of London has developed this method in which a rate of return is obtained by these parameters, the remaining methods don’t require these parameters.
advertisement

8. The ratio of annual benefit from improvement to annual cost of the improvement is called __________
a) Benefit
b) Cost
c) Benefit cost ratio
d) Maintenance cost
View Answer

Answer: c
Explanation: The ratio of annual benefit from the improvement to annual cost of the improvement is called benefit cost ratio, benefit is the profit, cost is the investment and maintenance cost is after the investment.

9. The national highway act was ammended in __________
a) April 1956
b) June 1995
c) July 1956
d) August 1995
View Answer

Answer: b
Explanation: The national highway act 1956, was amended in June 1995, it was actually planned in April 1956.
advertisement

10. As on April 2009, how many projects have been completed on BOT basis?
a) 5
b) 42
c) 25
d) 9
View Answer

Answer: d
Explanation: As on April 2009, twenty five projects have been sanctioned and nine projects were completed by April 2009 and in other proposals 42 projects were remaining in which 5 are completed.

Sanfoundry Global Education & Learning Series – Highway Engineering.

To practice all areas of Highway Engineering, here is complete set of 1000+ Multiple Choice Questions and Answers.

advertisement
advertisement
Subscribe to our Newsletters (Subject-wise). Participate in the Sanfoundry Certification contest to get free Certificate of Merit. Join our social networks below and stay updated with latest contests, videos, internships and jobs!

Youtube | Telegram | LinkedIn | Instagram | Facebook | Twitter | Pinterest
Manish Bhojasia, a technology veteran with 20+ years @ Cisco & Wipro, is Founder and CTO at Sanfoundry. He lives in Bangalore, and focuses on development of Linux Kernel, SAN Technologies, Advanced C, Data Structures & Alogrithms. Stay connected with him at LinkedIn.

Subscribe to his free Masterclasses at Youtube & technical discussions at Telegram SanfoundryClasses.