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

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

a.Asymmetric Transfer Mode

b.Annual Trade Marketing

c.Asynchronous Transfer Mode

d.Account Transaction Mode

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

a.Discounting

b.Compounding

c.None of these

d.Both a and b

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

a.Growth shares

b.Defensive shares

c.Cyclical shares

d.Income shares

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

a.Quarter-to-Date

b.Quality Trade Division

c.Quarter-to-Delivery

d.Quantitative Taxation Dividend

5. 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

6. Funds are financial resources in the form of:

a.Business funds

b.Cash Equivalents

c.All of these

d.Corporate Capital

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

a.Profitable enquiry

b.Price-to-earning ration

c.Private Equity

d.Premium Exchange

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

a.Chief Security Officer

b.Current Security Officer

c.Cabinet Security Officer

d.Consolidated Statistics Order

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

a.Total beginning price and ending price of security

b.Ending price of security

c.Beginning price of security

d.Difference between beginning price and ending price of security

10. The yield curve shows the relationship between:

a.Yield to maturity and terms to maturity

b.None of these

c.Terms to maturaluty and price

d.Yield to maturity and price

11. 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

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

a.Zero

b.Positive

c.Perfectly negative

d.Negative

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

a.Annual Gain Margin

b.Annual Gross Marketing

c.Annual General Marketing

d.Annual General Meeting

14. 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

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

a.Either a or b

b.To distribute it as dividend to the shareholders

c.None of these

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

16. 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

17. 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.Liquidity Risk

c.Call Risk

d.Default Risk

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

a.Capital Structure

b.Both of these

c.Financial Structure

d.None of these

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

a.Yield to Debit

b.Year to Delivery

c.Year-to-date

d.Yield of Divergence

20. Current yield is equal to What?

a.Market yield

b.Income yield

c.Running Yield

d.Any of these

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

a.Revenue expenditure

b.Capital expenditure

c.Rental Expenditure

d.None of these

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

a.Non-recurring finance functions

b.Recurring Finance

c.Both a and b

d.None of these

23. 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

24. The financial institute IFCI established in

a.1960

b.1948

c.1954

d.1945

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

a.Investment Decision

b.Dividend decisions

c.Any of these

d.Finance decisions

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

a.Fresh on Funding

b.Funding on Forex

c.Flow Of Funds

d.Focus on Funding

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

a.Non correlation

b.Negative

c.Highly positive

d.Highly negative

28. Financial leverage helps one to estimate ____________

a.The financial risk

b.Prouction risk

c.Business and Financial risk

d.The business risk

29. 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

30. The main components of capital budgeting are:

a.Capital expenditure and Budgeting

b.none of these

c.Capital expenditure

d.Budgeting

31. 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.Business Finance

c.Public Finance

d.Private Finance

32. 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.Benefits

c.All of these

d.Payoff

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

a.Operating lease

b.Sales and leaseback

c.Leveraged lease

d.Direct leasing arrangement

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

a.Net Asset Value

b.National Stock Exchange

c.New York Stock Exchnage

d.Net uield Security Exchnage

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

a.Withdraw Cash

b.Working capital

c.Wage Collateral

d.Wage Capital

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

a.Humped

b.Upwards

c.Downwards

d.Any Pattern

37. 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.None of these

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

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

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

a.Both a and b

b.Discounting method

c.Budgeting

d.Compounding method

39. 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

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

a.Limited Liablity Company

b.Lender of Last Commodity

c.Leverage Level Committee

d.Limited Libility corporation

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

a.Recurring Finance

b.None of these

c.Non-recurring finance functions

d.Both a and b

42. 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

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

a.Insurance Development Board

b.India Development Bonds

c.Investment in Direct Bonds

d.International Deposit on Bonds

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

a.Dividend valuation models

b.None of these

c.Relative valuation modesl

d.Both a and b

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

a.Credit management

b.Cash management

c.Procurement of essential funds

d.All of these

46. 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.Working Capital decisions

b.Financial Decisions

c.Capital bbudgeting decisions

d.None of these

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

a.Functional Profit Investment

b.Financial Portfolio Investment

c.Foreign Portfolio Investment

d.Financial Performance Index

48. 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.Free cash flow models

d.H model ofequity valuation

49. Not measurable time is?

a.Uncertainty

b.All of these

c.Certainty

d.Risk

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

a.Current return

b.None of these

c.Total return

d.Capital return

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

a.Non Hiring Business

b.National Housing Bank

c.National Housing and Building Association

d.Native Hidden Brokerage

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

a.Available For Stock

b.Annual Foreign Stock

c.Available For Sale

d.Annual Financial Stock

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

a.Ignore time value of money

b.Ignore risk factor

c.Ambiguity

d.All of these

54. 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.15%

b.10%

c.2.50%

d.5%

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

a.Any of these

b.Profit Maximization

c.Wealth Maximization

d.Welfare maximization

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

a.None of these

b.Finance Function

c.Management Funtion

d.Control Function

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

a.Short Term

b.Medium Term

c.Medium Term and Long Term

d.Long Term

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

a.Credit Operating Officer

b.Certified Operating Officer

c.Credit on Option

d.Chief Operating Officer

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

a.Time series analysis

b.Cross sectional analysis

c.Technical analysis

d.None of these

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

a.19th Centruy

b.20th Century

c.21st Century

d.None of these

61. Financial leverage measures ____________

a.1% Variation in level of production

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

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

d.No change with EBIT and EPS

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

a.Earning Preferred Stock

b.Equity Private Selling

c.Exchange per Share

d.Earnings per share

63. Financial leverage is also known as

a.Trading on equity

b.Trading on debt

c.Interest on debt

d.Interest on equity

64. The balance sheet valuation is a:

a.Futuristic approach

b.None of these

c.Historical approach

d.Nominal approach

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

a.Certified Commerce Exchange Act

b.Central Commerce Economic Affairs

c.Cabinet Committee on Economic Affairs

d.Central Committee Exchange Act

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

a.Expected dividends

b.All of these

c.Earnings

d.Cash flows

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

a.None of these

b.Non diversifiable risk

c.Adjusted risk

d.Diversifiable risk

68. Business finance deals with which of the following?

a.None of these

b.Both a and b

c.Utilize funds efficiently

d.Procuring funds from different sources on fair terms

69. Financial decisions involve ____________

a.investment sales decisions

b.Financing cash decisions

c.Investment, Financing and dividend decisions

d.investment dividend decisions

70. 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

71. 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

c.Timing and Risk

d.None of these

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

a.Chief Technology Officer

b.Capital take Over

c.Central Trading Operation

d.Commerce Trade Officer

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

a.Short term investment decisions

b.Working capital decisions

c.None of these

d.Both a and b

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

a.Greater than 0

b.Less than 0

c.Equal to 0

d.Negative

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

a.Profit and Loss

b.Premium and Liability

c.Promoting and Liquidity

d.Planning and Leaving

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

a.Wealth maximization objective

b.Profit maximization objective

c.None of these

d.Welfare maximization objective

77. Financial Management is mainly concerned with ____________

a.Profit maximization

b.Arrangement of funds

c.Efficient Management of every business

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

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

a.Native Sensex Efficiency

b.National Export in Shares

c.National Stock Exchange

d.National Shares and Equities

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

a.Financial Committee for Certified Business

b.Fast Credits on Conservative Basis

c.Food and Finance Corporation Board

d.Foreign Currency Convertible Bond

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

a.Share Capital

b.All of these

c.Trade Credit

d.Debt Capital

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

a.Middle Market

b.Money Market

c.Mutual Market Trading

d.Management Key Trading

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

a.Augmented price

b.Shadow prices

c.Discounted Prices

d.Market Price

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

a.Non diversifiable risk

b.None of these

c.systematic risk

d.Unsystematic risk

84. Financial controller is responsible

a.Securities Management

b.None of these

c.Cash Management

d.Credit Management

85. 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.Compounding

c.None of these

d.Discounting

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

a.Total return

b.Total risk

c.Premium

d.Dividend

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

a.Business Risk

b.Interest Risk

c.Financial Risk

d.Liquidity Risk

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

a.Forward approach

b.Risk approach

c.Backward approach

d.Earnings approach

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

a.Consolidated Audit General

b.Commercial Auditor General

c.Controller and Auditor General of India

d.Commercial Account Growth

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

a.Financial Asset

b.Fictitious asset

c.Tangible Asset

d.Real Asset

91. 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

92. 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

93. 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%

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

a.Mutual Fund

b.Maturity for

c.Market with finance

d.Financial Month

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

a.Cyclical shares

b.Growth shares

c.Blue chip shares

d.Income shares

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

a.Balance Sheet Equity

b.Bombay Stock Exchange

c.Balance Stock Equity

d.Base Stock Exchange

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

a.Authorized Teller Machine

b.Auto Teller Machine

c.Automatic Teller Machine

d.Automated Teller Machine

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

a.Discounted factor

b.Compounding factor

c.None of these

d.Capital recovery factor

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

a.Cost of Capital

b.Control

c.All of these

d.Risk

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

a.Plain Vanilla bonds

b.Pittables debentures

c.Commodity linked bonds

d.Zero coupon bonds

Finance MCQ Quiz for Various Competitive Exams

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

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