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

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

a.Highly positive

b.Non correlation

c.Negative

d.Highly negative

2. Financial controller is responsible

a.Securities Management

b.Credit Management

c.Cash Management

d.None of these

3. 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.All of these

b.Public Finance

c.Business Finance

d.Private Finance

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

a.21st Century

b.None of these

c.19th Centruy

d.20th Century

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

a.Money Market

b.Management Key Trading

c.Mutual Market Trading

d.Middle Market

6. Financial leverage helps one to estimate ____________

a.Prouction risk

b.The business risk

c.Business and Financial risk

d.The financial risk

7. The yield curve shows the relationship between:

a.Terms to maturaluty and price

b.Yield to maturity and price

c.None of these

d.Yield to maturity and terms to maturity

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

a.Foreign Portfolio Investment

b.Functional Profit Investment

c.Financial Portfolio Investment

d.Financial Performance Index

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

a.Equal to 0

b.Greater than 0

c.Negative

d.Less than 0

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

a.Upwards

b.Any Pattern

c.Downwards

d.Humped

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

a.Automated Teller Machine

b.Automatic Teller Machine

c.Auto Teller Machine

d.Authorized Teller Machine

12. Yield to maturity is what?

a.Current yield

b.None of the above

c.Combination of current yield and annual apppreciation

d.Annual appreciation or depreciation

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

a.Commodity linked bonds

b.Plain Vanilla bonds

c.Pittables debentures

d.Zero coupon bonds

14. Current yield is equal to What?

a.Running Yield

b.Market yield

c.Any of these

d.Income yield

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

a.Fictitious asset

b.Financial Asset

c.Real Asset

d.Tangible Asset

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

a.Auto-Regressive Integrated Moving Average

b.Active Resource for Investment and Management

c.Auxiliary Revenue for Investing on Market

d.Autonomous Resource for International Movement Association

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

a.Discounted factor

b.Capital recovery factor

c.Compounding factor

d.None of these

18. The balance sheet valuation is a:

a.Nominal approach

b.Futuristic approach

c.Historical approach

d.None of these

19. 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.Risk

c.Timing

d.Timing and Risk

20. 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.Augmented price

d.Market Price

21. 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.5%

c.15%

d.2.50%

22. The financial institute IFCI established in

a.1954

b.1945

c.1960

d.1948

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

a.Management Funtion

b.Control Function

c.None of these

d.Finance Function

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

a.Either collective exhausting or mutually inclusive

b.Mutually inclusive

c.None of these

d.Collective exhausting

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

a.Cyclical shares

b.Income shares

c.Defensive shares

d.Growth shares

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

a.Balance Stock Equity

b.Balance Sheet Equity

c.Base Stock Exchange

d.Bombay Stock Exchange

27. 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

28. Financial decisions involve ____________

a.investment dividend decisions

b.investment sales decisions

c.Financing cash decisions

d.Investment, Financing and dividend decisions

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

a.Free cash flow models

b.Gordon Model

c.None of these

d.H model ofequity valuation

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

a.All of these

b.Trade Credit

c.Debt Capital

d.Share Capital

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

a.Controller and Auditor General of India

b.Commercial Auditor General

c.Commercial Account Growth

d.Consolidated Audit General

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

a.Planning and Leaving

b.Premium and Liability

c.Profit and Loss

d.Promoting and Liquidity

33. Not measurable time is?

a.Risk

b.All of these

c.Certainty

d.Uncertainty

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

a.Cabinet Committee on Economic Affairs

b.Central Commerce Economic Affairs

c.Certified Commerce Exchange Act

d.Central Committee Exchange Act

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

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

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

c.None of these

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

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

a.Yield of Divergence

b.Year-to-date

c.Year to Delivery

d.Yield to Debit

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

a.Dividend

b.Premium

c.Total return

d.Total risk

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

a.Payoff

b.Benefits

c.Wealth

d.All of these

39. The main components of capital budgeting are:

a.Capital expenditure and Budgeting

b.Capital expenditure

c.none of these

d.Budgeting

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

a.National Housing Bank

b.National Housing and Building Association

c.Native Hidden Brokerage

d.Non Hiring Business

41. 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

42. 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.20%

b.10%

c.15%

d.25%

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

a.Upwards slope

b.Downward slope

c.Humped slope

d.Flat

44. 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.Relative valuation modesl

d.Dividend valuation models

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

a.Credit management

b.Procurement of essential funds

c.All of these

d.Cash management

46. 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

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

a.Foreign Currency Convertible Bond

b.Fast Credits on Conservative Basis

c.Financial Committee for Certified Business

d.Food and Finance Corporation Board

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

a.Discounting

b.Compounding

c.None of these

d.Annuity

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

a.Cabinet Security Officer

b.Consolidated Statistics Order

c.Chief Security Officer

d.Current Security Officer

50. 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.Required rate of return

b.Inflation premium

c.Risk premium

d.Risk free rate of return

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

a.Welfare maximization

b.Wealth Maximization

c.Any of these

d.Profit Maximization

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

a.Recurring Finance

b.Non-recurring finance functions

c.None of these

d.Both a and b

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

a.Either a or b

b.None of these

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

d.To distribute it as dividend to the shareholders

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

a.None of these

b.systematic risk

c.Non diversifiable risk

d.Unsystematic risk

55. Financial leverage measures ____________

a.1% Variation in level of production

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

c.No change with EBIT and EPS

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

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

a.Both of these

b.Financial Structure

c.Capital Structure

d.None of these

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

a.None of these

b.Asset market line

c.Security market line

d.Capital market line

58. Financial leverage is also known as

a.Trading on equity

b.Interest on equity

c.Trading on debt

d.Interest on debt

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

a.Private Equity

b.Profitable enquiry

c.Premium Exchange

d.Price-to-earning ration

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

a.All of these

b.Control

c.Cost of Capital

d.Risk

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

a.None of these

b.Compounding

c.Both a and b

d.Discounting

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

a.Finance decisions

b.Investment Decision

c.Any of these

d.Dividend decisions

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

a.Profit maximization objective

b.Welfare maximization objective

c.Wealth maximization objective

d.None of these

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

a.Reovery Factor

b.Compounding

c.Discounting

d.Annuity

65. Funds are financial resources in the form of:

a.Cash Equivalents

b.Business funds

c.Corporate Capital

d.All of these

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

a.Financial Risk

b.Interest Risk

c.Business Risk

d.Liquidity Risk

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

a.All of these

b.Ignore risk factor

c.Ignore time value of money

d.Ambiguity

68. Financial Management is mainly concerned with ____________

a.Efficient Management of every business

b.Profit maximization

c.Arrangement of funds

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

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

a.Annual Foreign Stock

b.Annual Financial Stock

c.Available For Stock

d.Available For Sale

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

a.Diversifiable risk

b.Non diversifiable risk

c.Adjusted risk

d.None of these

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

a.Capital expenditure

b.Rental Expenditure

c.Revenue expenditure

d.None of these

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

a.Income shares

b.Cyclical shares

c.Blue chip shares

d.Growth shares

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

a.None of these

b.Mney market

c.Primary market

d.Secondary market

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

a.Chief Operating Officer

b.Credit Operating Officer

c.Certified Operating Officer

d.Credit on Option

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

a.National Stock Exchange

b.Native Sensex Efficiency

c.National Shares and Equities

d.National Export in Shares

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

a.Earnings per share

b.Exchange per Share

c.Earning Preferred Stock

d.Equity Private Selling

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

a.All of these

b.Expected dividends

c.Cash flows

d.Earnings

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

a.Fresh on Funding

b.Focus on Funding

c.Funding on Forex

d.Flow Of Funds

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

a.Asynchronous Transfer Mode

b.Asymmetric Transfer Mode

c.Annual Trade Marketing

d.Account Transaction Mode

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

a.Perfectly negative

b.Positive

c.Zero

d.Negative

81. Industrial Development Bank of India is

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

b.Wholly-owned subsidiary of Reserve Bank of India

c.Wholly owned Government of India undertaking

d.Pubic Limited Company

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

a.Central Trading Operation

b.Chief Technology Officer

c.Commerce Trade Officer

d.Capital take Over

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

a.Call Risk

b.Liquidity Risk

c.Interest Risk

d.Financial risk

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

a.New York Stock Exchnage

b.National Stock Exchange

c.Net Asset Value

d.Net uield Security Exchnage

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

a.Beginning price of security

b.Total beginning price and ending price of security

c.Difference between beginning price and ending price of security

d.Ending price of security

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

a.Total return

b.None of these

c.Capital return

d.Current return

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

a.Technical analysis

b.Time series analysis

c.None of these

d.Cross sectional analysis

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

a.Annual General Marketing

b.Annual General Meeting

c.Annual Gain Margin

d.Annual Gross Marketing

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

a.Medium Term and Long Term

b.Short Term

c.Medium Term

d.Long Term

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

a.International Deposit on Bonds

b.India Development Bonds

c.Investment in Direct Bonds

d.Insurance Development Board

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

a.Sales and leaseback

b.Leveraged lease

c.Direct leasing arrangement

d.Operating lease

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

a.Working capital decisions

b.Both a and b

c.None of these

d.Short term investment decisions

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

a.Backward approach

b.Earnings approach

c.Risk approach

d.Forward approach

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

a.Budgeting

b.Both a and b

c.Compounding method

d.Discounting method

95. 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

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

a.Quantitative Taxation Dividend

b.Quarter-to-Date

c.Quarter-to-Delivery

d.Quality Trade Division

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

a.Limited Libility corporation

b.Lender of Last Commodity

c.Limited Liablity Company

d.Leverage Level Committee

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

a.Working capital

b.Wage Capital

c.Wage Collateral

d.Withdraw Cash

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

a.Market with finance

b.Financial Month

c.Mutual Fund

d.Maturity for

100. 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.Capital bbudgeting decisions

b.None of these

c.Working Capital decisions

d.Financial Decisions

Finance MCQ Quiz for Various Competitive Exams

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

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