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 "AFS"?

a.Annual Financial Stock

b.Available For Sale

c.Annual Foreign Stock

d.Available For Stock

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

a.Capital Structure

b.None of these

c.Financial Structure

d.Both of these

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

a.Backward approach

b.Risk approach

c.Forward approach

d.Earnings approach

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

a.All of these

b.Ambiguity

c.Ignore time value of money

d.Ignore risk factor

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

a.None of these

b.Timing and Risk

c.Risk

d.Timing

6. The yield curve shows the relationship between:

a.Yield to maturity and terms to maturity

b.Yield to maturity and price

c.Terms to maturaluty and price

d.None of these

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

a.Gordon Model

b.H model ofequity valuation

c.Free cash flow models

d.None of these

8. Financial decisions involve ____________

a.Investment, Financing and dividend decisions

b.Financing cash decisions

c.investment dividend decisions

d.investment sales decisions

9. 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.Finance Function

d.Control Function

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

a.Premium and Liability

b.Planning and Leaving

c.Promoting and Liquidity

d.Profit and Loss

11. Industrial Development Bank of India is

a.Wholly owned Government of India undertaking

b.Wholly-owned subsidiary of Reserve Bank of India

c.Pubic Limited Company

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

12. 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.10%

c.20%

d.25%

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

a.Effective management of capital

b.Acquiring capital assets of the organization

c.Arrange of utiization of funds

d.Arrangement of financial resources

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

a.Current Security Officer

b.Consolidated Statistics Order

c.Chief Security Officer

d.Cabinet Security Officer

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

a.Withdraw Cash

b.Wage Capital

c.Wage Collateral

d.Working capital

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

a.Commerce Trade Officer

b.Central Trading Operation

c.Chief Technology Officer

d.Capital take Over

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

a.None of these

b.Discounted factor

c.Compounding factor

d.Capital recovery factor

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

a.None of these

b.Wealth maximization objective

c.Profit maximization objective

d.Welfare maximization objective

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

a.Equal to 0

b.Negative

c.Less than 0

d.Greater than 0

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

a.All of these

b.Cash flows

c.Expected dividends

d.Earnings

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

a.Flow Of Funds

b.Funding on Forex

c.Focus on Funding

d.Fresh on Funding

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

a.Management Key Trading

b.Mutual Market Trading

c.Money Market

d.Middle Market

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

a.Controller and Auditor General of India

b.Commercial Account Growth

c.Commercial Auditor General

d.Consolidated Audit General

24. The balance sheet valuation is a:

a.None of these

b.Nominal approach

c.Historical approach

d.Futuristic approach

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

a.Base Stock Exchange

b.Balance Sheet Equity

c.Balance Stock Equity

d.Bombay Stock Exchange

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

a.Account Transaction Mode

b.Asymmetric Transfer Mode

c.Annual Trade Marketing

d.Asynchronous Transfer Mode

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

a.Medium Term

b.Medium Term and Long Term

c.Short Term

d.Long Term

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

a.Business Risk

b.Financial Risk

c.Liquidity Risk

d.Interest Risk

29. The financial institute IFCI established in

a.1945

b.1954

c.1960

d.1948

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

a.Control

b.All of these

c.Risk

d.Cost of Capital

31. 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

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

a.Non correlation

b.Highly negative

c.Negative

d.Highly positive

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

a.Defensive shares

b.Growth shares

c.Income shares

d.Cyclical shares

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

a.Year to Delivery

b.Year-to-date

c.Yield of Divergence

d.Yield to Debit

35. Financial leverage helps one to estimate ____________

a.Prouction risk

b.Business and Financial risk

c.The financial risk

d.The business risk

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

a.Insurance Development Board

b.International Deposit on Bonds

c.India Development Bonds

d.Investment in Direct Bonds

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

a.Central Commerce Economic Affairs

b.Cabinet Committee on Economic Affairs

c.Central Committee Exchange Act

d.Certified Commerce Exchange Act

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

a.Fictitious asset

b.Financial Asset

c.Tangible Asset

d.Real Asset

39. The main components of capital budgeting are:

a.Capital expenditure and Budgeting

b.Capital expenditure

c.Budgeting

d.none of these

40. Current yield is equal to What?

a.Running Yield

b.Any of these

c.Market yield

d.Income yield

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

a.Any of these

b.Investment Decision

c.Finance decisions

d.Dividend decisions

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

a.Collective exhausting

b.Either collective exhausting or mutually inclusive

c.Mutually inclusive

d.None of these

43. Financial controller is responsible

a.Securities Management

b.None of these

c.Credit Management

d.Cash Management

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

a.Share Capital

b.All of these

c.Debt Capital

d.Trade Credit

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

a.Diversifiable risk

b.Non diversifiable risk

c.None of these

d.Adjusted risk

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

a.Certified Operating Officer

b.Credit Operating Officer

c.Chief Operating Officer

d.Credit on Option

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

a.Functional Profit Investment

b.Financial Portfolio Investment

c.Financial Performance Index

d.Foreign Portfolio Investment

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

a.Active Resource for Investment and Management

b.Autonomous Resource for International Movement Association

c.Auto-Regressive Integrated Moving Average

d.Auxiliary Revenue for Investing on Market

49. Financial leverage is also known as

a.Interest on equity

b.Interest on debt

c.Trading on equity

d.Trading on debt

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

a.Food and Finance Corporation Board

b.Fast Credits on Conservative Basis

c.Foreign Currency Convertible Bond

d.Financial Committee for Certified Business

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

a.19th Centruy

b.21st Century

c.20th Century

d.None of these

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

a.Financial risk

b.Interest Risk

c.Call Risk

d.Liquidity Risk

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

a.None of these

b.Total return

c.Capital return

d.Current return

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

a.Liquidity Risk

b.Call Risk

c.Default Risk

d.Financial Risk

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

a.Compounding

b.Both a and b

c.Discounting

d.None of these

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

a.Compounding method

b.Discounting method

c.Both a and b

d.Budgeting

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

a.None of these

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

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

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

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

a.Primary market

b.None of these

c.Secondary market

d.Mney market

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

a.Perfectly negative

b.Positive

c.Zero

d.Negative

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

a.None of these

b.Time series analysis

c.Technical analysis

d.Cross sectional analysis

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

a.Private Equity

b.Price-to-earning ration

c.Premium Exchange

d.Profitable enquiry

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

a.Discounted Prices

b.Shadow prices

c.Market Price

d.Augmented price

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

a.Beginning price of security

b.Ending price of security

c.Difference between beginning price and ending price of security

d.Total beginning price and ending price of security

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

a.None of these

b.Recurring Finance

c.Non-recurring finance functions

d.Both a and b

65. 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.5%

d.15%

66. Financial Management is mainly concerned with ____________

a.Profit maximization

b.Efficient Management of every business

c.Arrangement of funds

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

67. Not measurable time is?

a.Risk

b.Certainty

c.All of these

d.Uncertainty

68. Yield to maturity is what?

a.Annual appreciation or depreciation

b.Combination of current yield and annual apppreciation

c.Current yield

d.None of the above

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

a.Automated Teller Machine

b.Automatic Teller Machine

c.Authorized Teller Machine

d.Auto Teller Machine

70. 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

71. 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

72. Business finance deals with which of the following?

a.Utilize funds efficiently

b.None of these

c.Both a and b

d.Procuring funds from different sources on fair terms

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

a.Downward slope

b.Humped slope

c.Flat

d.Upwards slope

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

a.Capital expenditure

b.Revenue expenditure

c.Rental Expenditure

d.None of these

75. 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.Financial Decisions

c.Capital bbudgeting decisions

d.Working Capital decisions

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

a.Sales and leaseback

b.Operating lease

c.Direct leasing arrangement

d.Leveraged lease

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

a.Both a and b

b.Relative valuation modesl

c.None of these

d.Dividend valuation models

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

a.Discounting

b.Reovery Factor

c.Compounding

d.Annuity

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

a.Any Pattern

b.Humped

c.Downwards

d.Upwards

80. 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.Business Finance

b.Private Finance

c.Public Finance

d.All of these

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

a.Earnings per share

b.Earning Preferred Stock

c.Equity Private Selling

d.Exchange per Share

82. 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.Inflation premium

b.Risk premium

c.Risk free rate of return

d.Required rate of return

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

a.Any of these

b.Wealth Maximization

c.Welfare maximization

d.Profit Maximization

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

a.Total risk

b.Dividend

c.Premium

d.Total return

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

a.Non Hiring Business

b.Native Hidden Brokerage

c.National Housing Bank

d.National Housing and Building Association

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

a.Leverage Level Committee

b.Limited Liablity Company

c.Limited Libility corporation

d.Lender of Last Commodity

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.Income shares

c.Growth shares

d.Blue chip shares

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

a.All of these

b.Credit management

c.Cash management

d.Procurement of essential funds

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

a.Net uield Security Exchnage

b.New York Stock Exchnage

c.Net Asset Value

d.National Stock Exchange

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

a.Security market line

b.Asset market line

c.None of these

d.Capital market line

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

a.None of these

b.To distribute it as dividend to the shareholders

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

d.Either a or b

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

a.Annual Gain Margin

b.Annual General Marketing

c.Annual Gross Marketing

d.Annual General Meeting

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

a.Maturity for

b.Financial Month

c.Mutual Fund

d.Market with finance

94. Funds are financial resources in the form of:

a.Corporate Capital

b.All of these

c.Cash Equivalents

d.Business funds

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

a.Benefits

b.Payoff

c.Wealth

d.All of these

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

a.National Shares and Equities

b.National Stock Exchange

c.National Export in Shares

d.Native Sensex Efficiency

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

a.None of these

b.Both a and b

c.Recurring Finance

d.Non-recurring finance functions

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

a.Non diversifiable risk

b.systematic risk

c.None of these

d.Unsystematic risk

99. Financial leverage measures ____________

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

b.No change with EBIT and EPS

c.1% Variation in level of production

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

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

a.Quarter-to-Delivery

b.Quarter-to-Date

c.Quantitative Taxation Dividend

d.Quality Trade Division

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