Finance MCQ Quiz for Competitive Exams

Finance MCQs Question Answers Quiz | 100 Finance MCQs for Entrance exams

Finance MCQ Quiz– Practice Finance MCQ Question suitable for various Competitive Exams. Finance MCQ Questions are important for various competitive exams. Here we have compiled 100 Finance MCQ Questions with solutions. Practice Finance MCQ Quiz

Please wait...

1. What is the full form of "ARIMA"?

a.Auto-Regressive Integrated Moving Average

b.Autonomous Resource for International Movement Association

c.Auxiliary Revenue for Investing on Market

d.Active Resource for Investment and Management

2. In his traditional role the finance manager is responsible for ___________

a.Arrangement of financial resources

b.Acquiring capital assets of the organization

c.Effective management of capital

d.Arrange of utiization of funds

3. The main components of capital budgeting are:

a.none of these

b.Capital expenditure and Budgeting

c.Budgeting

d.Capital expenditure

4. Financial leverage is also known as

a.Trading on debt

b.Interest on equity

c.Trading on equity

d.Interest on debt

5. What is the full form of "FPI"?

a.Functional Profit Investment

b.Financial Portfolio Investment

c.Foreign Portfolio Investment

d.Financial Performance Index

6. The government finance which includes the principles and practices relating to the Procurement and management of funds for Central Government, and Local bodies is known as:

a.Private Finance

b.Business Finance

c.All of these

d.Public Finance

7. The relationship of required rate of return and risk shows the linearity in the:

a.Capital market line

b.None of these

c.Asset market line

d.Security market line

8. Purchasing power of risk hit the investor when there are chances that the:

a.Real return on a security is less than the nominal return

b.Real return on a security is equal to the nominal return

c.None of these

d.Real return on a security is more than the nominal return

9. The balance sheet valuation is a:

a.None of these

b.Nominal approach

c.Historical approach

d.Futuristic approach

10. The financial manager selects one or more sources of finance after proper taking into Consideration of:

a.Risk

b.Control

c.Cost of Capital

d.All of these

11. Financial decisions involve ____________

a.Financing cash decisions

b.investment dividend decisions

c.Investment, Financing and dividend decisions

d.investment sales decisions

12. The method of converting the amount of future cash into an amount of cash and cash equivalents value in present is known as:

a.Annuity

b.Discounting

c.Compounding

d.None of these

13. What is the full form of "CSO"?

a.Current Security Officer

b.Cabinet Security Officer

c.Consolidated Statistics Order

d.Chief Security Officer

14. Business finance deals with which of the following?

a.None of these

b.Utilize funds efficiently

c.Both a and b

d.Procuring funds from different sources on fair terms

15. Not measurable time is?

a.Certainty

b.All of these

c.Uncertainty

d.Risk

16. What is the full form of "CTO"?

a.Commerce Trade Officer

b.Chief Technology Officer

c.Capital take Over

d.Central Trading Operation

17. What is the full form of "P/E"?

a.Premium Exchange

b.Profitable enquiry

c.Private Equity

d.Price-to-earning ration

18. Financial leverage helps one to estimate ____________

a.The financial risk

b.Prouction risk

c.The business risk

d.Business and Financial risk

19. What is the full form of "WC"?

a.Wage Capital

b.Wage Collateral

c.Working capital

d.Withdraw Cash

20. The comparison of various facets of the same firm over a period of time is called as

a.Time series analysis

b.Technical analysis

c.None of these

d.Cross sectional analysis

21. What is the full form of "COO"?

a.Credit Operating Officer

b.Credit on Option

c.Certified Operating Officer

d.Chief Operating Officer

22. Yield to maturity is what?

a.Combination of current yield and annual apppreciation

b.None of the above

c.Current yield

d.Annual appreciation or depreciation

23. Cumulative wealth index measures the level of wealth of investor by taking the cumulative effect of:

a.Dividend

b.Total risk

c.Premium

d.Total return

24. What is the full form of "NHB"?

a.National Housing Bank

b.Non Hiring Business

c.National Housing and Building Association

d.Native Hidden Brokerage

25. The application of the probability distribution is the characteristic of possible outcome that must be:

a.Mutually inclusive

b.Collective exhausting

c.Either collective exhausting or mutually inclusive

d.None of these

26. The value of holding period return is always show:

a.Greater than 0

b.Negative

c.Equal to 0

d.Less than 0

27. The decisions of investing in long term or fixed assets on the basis of cost-benefit analysis or risk-return analysis are known as:

a.None of these

b.Working Capital decisions

c.Financial Decisions

d.Capital bbudgeting decisions

28. The social cost benefits analysis is primarily used to determine the economic benefits of the activities in forms of which of the following:

a.Shadow prices

b.Discounted Prices

c.Augmented price

d.Market Price

29. The shares of the companies having high dividend payout ratios are:

a.Cyclical shares

b.Growth shares

c.Income shares

d.Defensive shares

30. The method that converts the amount of present cash into an amount of cash of equivalent value in future is:

a.Compounding method

b.Budgeting

c.Discounting method

d.Both a and b

31. Which is the main motive is to select activities having positive impact on society in:

a.Profit maximization objective

b.None of these

c.Wealth maximization objective

d.Welfare maximization objective

32. What is the full form of "ATM"?

a.Asymmetric Transfer Mode

b.Annual Trade Marketing

c.Asynchronous Transfer Mode

d.Account Transaction Mode

33. What is the full form of "P&L"?

a.Profit and Loss

b.Planning and Leaving

c.Premium and Liability

d.Promoting and Liquidity

34. What is the full form of "MMKT"?

a.Middle Market

b.Money Market

c.Management Key Trading

d.Mutual Market Trading

35. The price of a security at the beginning of year is 100, the price at the end of the year is 125 and dividend paid at the end of the year is Rs.5. The current return of the security is:

a.10%

b.2.50%

c.15%

d.5%

36. The managerial process which is concerned with the planning and control of financial resources is called as:

a.Management Funtion

b.None of these

c.Control Function

d.Finance Function

37. The Market of initial public offerings where any new share is issued known as:

a.Mney market

b.Primary market

c.Secondary market

d.None of these

38. The risk in terms of variability in security’s total return due to some exogenous factors is known as:

a.None of these

b.Unsystematic risk

c.Non diversifiable risk

d.systematic risk

39. Treasurer performs the functions of which of the following functions:

a.Credit management

b.Procurement of essential funds

c.Cash management

d.All of these

40. The model that assumes the normal rate of growth over an indefinite time horizon is assumed is:

a.Gordon Model

b.None of these

c.H model ofequity valuation

d.Free cash flow models

41. Financial management came into existence as a separate field of study from…?

a.19th Centruy

b.21st Century

c.None of these

d.20th Century

42. An asset that derives value from a contractual Claim is called as

a.Financial Asset

b.Fictitious asset

c.Real Asset

d.Tangible Asset

43. The yield curve shows the relationship between:

a.Yield to maturity and terms to maturity

b.Terms to maturaluty and price

c.None of these

d.Yield to maturity and price

44. What indicate the relationship between interest rate and reinvestment rate

a.Negative

b.Zero

c.Perfectly negative

d.Positive

45. Short term or current assets Decisions are known as:

a.Both a and b

b.Short term investment decisions

c.Working capital decisions

d.None of these

46. What is the full form of "YTD"?

a.Year to Delivery

b.Yield of Divergence

c.Year-to-date

d.Yield to Debit

47. What is the full form of "BSE"?

a.Balance Stock Equity

b.Balance Sheet Equity

c.Base Stock Exchange

d.Bombay Stock Exchange

48. The profits or income of an entity or organization can be used:

a.Either a or b

b.To retain it in business in the form of accumulated profits

c.To distribute it as dividend to the shareholders

d.None of these

49. The financial activities which are performed only on special events like promotion. Amalgamation and solvency crisis are called as:

a.Recurring Finance

b.Both a and b

c.Non-recurring finance functions

d.None of these

50. The risk that arises due to use of debt by the firm causing variability of return for creditors and shareholders is:

a.Financial Risk

b.Call Risk

c.Liquidity Risk

d.Default Risk

51. A fixed cash flow in each year for a specified number of years is called as…….

a.Compounding

b.Discounting

c.Annuity

d.Reovery Factor

52. The excess of the present value of benefits over the present value of costs of a course of Action is called as:

a.Wealth

b.Payoff

c.All of these

d.Benefits

53. What is the full form of "CAG"?

a.Commercial Auditor General

b.Consolidated Audit General

c.Controller and Auditor General of India

d.Commercial Account Growth

54. The principal objective was to create a development financial institution for providing ______project financing to Indian businesses:

a.Long Term

b.Medium Term

c.Short Term

d.Medium Term and Long Term

55. Financial leverage measures ____________

a.Sensitivity of EPS with respect to 1% change in level of EBIT

b.1% Variation in level of production

c.No change with EBIT and EPS

d.Sensitivity of EBIT with Respect of 1% change with respoect to output

56. What is the full form of "MF"?

a.Maturity for

b.Market with finance

c.Mutual Fund

d.Financial Month

57. What is the full form of "EPS"?

a.Equity Private Selling

b.Earning Preferred Stock

c.Exchange per Share

d.Earnings per share

58. The greater long term rates as compared to short term rates is an indicator of which of the following ….

a.Humped slope

b.Upwards slope

c.Downward slope

d.Flat

59. The type of lease that includes a third party, a lender, is called a(n)

a.Leveraged lease

b.Direct leasing arrangement

c.Operating lease

d.Sales and leaseback

60. What is the full form of "NSE"?

a.National Shares and Equities

b.National Export in Shares

c.Native Sensex Efficiency

d.National Stock Exchange

61. The yield curve representing the structure of interest rates of bonds may follow the?

a.Downwards

b.Any Pattern

c.Humped

d.Upwards

62. The process of calculating future value of cash flows is known as

a.Compounding

b.Discounting

c.Both a and b

d.None of these

63. The sum of short term and long term sources of finance is known as:

a.None of these

b.Capital Structure

c.Financial Structure

d.Both of these

64. What is the full form of "FCCB"?

a.Financial Committee for Certified Business

b.Food and Finance Corporation Board

c.Foreign Currency Convertible Bond

d.Fast Credits on Conservative Basis

65. The degree correlation between risk and return over a longer period of time is generally …?

a.Highly negative

b.Non correlation

c.Negative

d.Highly positive

66. The profit maximization objective has been criticized on the basis of:

a.Ignore time value of money

b.All of these

c.Ambiguity

d.Ignore risk factor

67. What is the full form of "AFS"?

a.Annual Foreign Stock

b.Available For Stock

c.Available For Sale

d.Annual Financial Stock

68. What is the full form of "FOF"?

a.Fresh on Funding

b.Focus on Funding

c.Flow Of Funds

d.Funding on Forex

69. What is the full form of "NYSE"?

a.National Stock Exchange

b.Net uield Security Exchnage

c.Net Asset Value

d.New York Stock Exchnage

70. The decisions relating to the use of profits or income of an entity or organization are known

a.Finance decisions

b.Dividend decisions

c.Investment Decision

d.Any of these

71. The investment made in fixed assets is known as:

a.Rental Expenditure

b.Capital expenditure

c.None of these

d.Revenue expenditure

72. What is the full form of "CCEA"?

a.Certified Commerce Exchange Act

b.Central Commerce Economic Affairs

c.Central Committee Exchange Act

d.Cabinet Committee on Economic Affairs

73. Industrial Development Bank of India is

a.Pubic Limited Company

b.Wholly-owned subsidiary of Reserve Bank of India

c.Wholly owned Government of India undertaking

d.A corporation and owned by the Government of India and Public secot banks

74. The minimum expected rate of return that is needed to persuade an investor to purchase the security at given risk is which of the following ?

a.Risk free rate of return

b.Required rate of return

c.Inflation premium

d.Risk premium

75. The valuation of equity by the discounted cash flow techniques depends on:

a.Cash flows

b.Earnings

c.All of these

d.Expected dividends

76. Financial Management is mainly concerned with ____________

a.Arrangement of funds

b.Efficient Management of every business

c.All aspects of acquiring and utilizing financial resources for firms activities

d.Profit maximization

77. What is the full form of "AGM"?

a.Annual Gross Marketing

b.Annual General Marketing

c.Annual General Meeting

d.Annual Gain Margin

78. The sources of finance from which the quantum of required funds can be raised is/are:

a.Debt Capital

b.Trade Credit

c.Share Capital

d.All of these

79. The financial institute IFCI established in

a.1948

b.1960

c.1954

d.1945

80. Which models generally applied by the fundamental analysts to valuate the equity share are called to be?

a.None of these

b.Both a and b

c.Dividend valuation models

d.Relative valuation modesl

81. Risk associated with a particular firm’s operating conditions is which of the following risk?

a.Interest Risk

b.Business Risk

c.Liquidity Risk

d.Financial Risk

82. Current yield is equal to What?

a.Income yield

b.Running Yield

c.Any of these

d.Market yield

83. What is the full form of "LLC"?

a.Lender of Last Commodity

b.Limited Liablity Company

c.Leverage Level Committee

d.Limited Libility corporation

84. The appreciation in the value of security or asset is called as:

a.None of these

b.Capital return

c.Current return

d.Total return

85. The discounted cash flow is which of the following approach?

a.Risk approach

b.Earnings approach

c.Forward approach

d.Backward approach

86. Straight bonds are also known as which of the following?

a.Plain Vanilla bonds

b.Zero coupon bonds

c.Pittables debentures

d.Commodity linked bonds

87. The shares of well-established, financially strong and big companies having remarkable Record of dividends and earnings are known as:

a.Cyclical shares

b.Blue chip shares

c.Growth shares

d.Income shares

88. Financial controller is responsible

a.Securities Management

b.Credit Management

c.None of these

d.Cash Management

89. The variability in return on security due to changes in the level of interest rate in market is called as:

a.Call Risk

b.Financial risk

c.Liquidity Risk

d.Interest Risk

90. The financial activities which are performed regularly are known as:

a.Non-recurring finance functions

b.None of these

c.Recurring Finance

d.Both a and b

91. What is the full form of "QTD"?

a.Quarter-to-Date

b.Quarter-to-Delivery

c.Quantitative Taxation Dividend

d.Quality Trade Division

92. Which of the following risks is indicated by the beta coefficient in Financial Management?

a.Adjusted risk

b.None of these

c.Non diversifiable risk

d.Diversifiable risk

93. The cash flows at different time periods should be made comparable to take sound Decisions by adjusting which of the following?

a.Risk

b.Timing and Risk

c.Timing

d.None of these

94. The price of a security at the beginning of the year is 200, the price at the end of the year is 225 and the dividend paid at the end of the year is 15. The total rate of return is:

a.15%

b.20%

c.10%

d.25%

95. What is the full form of "ATM"?

a.Auto Teller Machine

b.Automated Teller Machine

c.Authorized Teller Machine

d.Automatic Teller Machine

96. Current return is the ratio of annual income to:

a.Total beginning price and ending price of security

b.Difference between beginning price and ending price of security

c.Ending price of security

d.Beginning price of security

97. The reciprocal of the present value of annuity is known as what?

a.Discounted factor

b.Capital recovery factor

c.None of these

d.Compounding factor

98. What is the full form of "IDB"?

a.India Development Bonds

b.International Deposit on Bonds

c.Investment in Direct Bonds

d.Insurance Development Board

99. Funds are financial resources in the form of:

a.Corporate Capital

b.Business funds

c.All of these

d.Cash Equivalents

100. The financial objectives in terms of decision criteria may be:

a.Profit Maximization

b.Any of these

c.Welfare maximization

d.Wealth Maximization

Finance MCQ Quiz for Various Competitive Exams

Finance MCQs Question Answers Quiz | 100 Finance MCQs for Entrance exams

1 Comment

Submit a Comment Cancel reply

General

CBSE School Lessons

Popular Pages