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.Automatic Teller Machine

b.Automated Teller Machine

c.Auto Teller Machine

d.Authorized Teller Machine

2. 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

3. Financial decisions involve ____________

a.Financing cash decisions

b.investment sales decisions

c.Investment, Financing and dividend decisions

d.investment dividend decisions

4. Current yield is equal to What?

a.Any of these

b.Income yield

c.Running Yield

d.Market yield

5. The main components of capital budgeting are:

a.Budgeting

b.Capital expenditure

c.none of these

d.Capital expenditure and Budgeting

6. 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.Required rate of return

c.Risk premium

d.Risk free rate of return

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

a.Promoting and Liquidity

b.Planning and Leaving

c.Profit and Loss

d.Premium and Liability

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

a.Financial Asset

b.Fictitious asset

c.Real Asset

d.Tangible Asset

9. 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.Public Finance

c.All of these

d.Business Finance

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

a.All of these

b.Cash flows

c.Expected dividends

d.Earnings

11. Financial controller is responsible

a.Securities Management

b.Credit Management

c.None of these

d.Cash Management

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

a.Equal to 0

b.Less than 0

c.Negative

d.Greater than 0

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

a.Annuity

b.Compounding

c.Discounting

d.Reovery Factor

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

a.Capital recovery factor

b.Discounted factor

c.None of these

d.Compounding factor

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

a.National Stock Exchange

b.National Export in Shares

c.National Shares and Equities

d.Native Sensex Efficiency

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

a.Any of these

b.Profit Maximization

c.Wealth Maximization

d.Welfare maximization

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

a.Flat

b.Downward slope

c.Humped slope

d.Upwards slope

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

a.Account Transaction Mode

b.Annual Trade Marketing

c.Asynchronous Transfer Mode

d.Asymmetric Transfer Mode

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

a.Market Price

b.Discounted Prices

c.Shadow prices

d.Augmented price

20. 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

21. 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%

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

a.Non Hiring Business

b.National Housing and Building Association

c.National Housing Bank

d.Native Hidden Brokerage

23. Business finance deals with which of the following?

a.Both a and b

b.Utilize funds efficiently

c.Procuring funds from different sources on fair terms

d.None of these

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

a.Control

b.Cost of Capital

c.All of these

d.Risk

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

a.Zero

b.Positive

c.Negative

d.Perfectly negative

26. 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.Payoff

d.All of these

27. 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

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

a.Income shares

b.Blue chip shares

c.Growth shares

d.Cyclical shares

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

a.Long Term

b.Short Term

c.Medium Term

d.Medium Term and Long Term

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

a.Money Market

b.Middle Market

c.Management Key Trading

d.Mutual Market Trading

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

a.Direct leasing arrangement

b.Leveraged lease

c.Operating lease

d.Sales and leaseback

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

a.Difference between beginning price and ending price of security

b.Beginning price of security

c.Total beginning price and ending price of security

d.Ending price of security

33. Yield to maturity is what?

a.Combination of current yield and annual apppreciation

b.Current yield

c.None of the above

d.Annual appreciation or depreciation

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

a.Humped

b.Upwards

c.Any Pattern

d.Downwards

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

a.Default Risk

b.Call Risk

c.Financial Risk

d.Liquidity Risk

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

a.Market with finance

b.Mutual Fund

c.Maturity for

d.Financial Month

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

a.Annual Foreign Stock

b.Available For Stock

c.Annual Financial Stock

d.Available For Sale

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

a.Autonomous Resource for International Movement Association

b.Active Resource for Investment and Management

c.Auto-Regressive Integrated Moving Average

d.Auxiliary Revenue for Investing on Market

39. Not measurable time is?

a.All of these

b.Risk

c.Certainty

d.Uncertainty

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

a.Financial Structure

b.Both of these

c.None of these

d.Capital Structure

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

a.Working capital

b.Wage Capital

c.Wage Collateral

d.Withdraw Cash

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

a.Highly positive

b.Negative

c.Non correlation

d.Highly negative

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

a.Interest Risk

b.Financial Risk

c.Business Risk

d.Liquidity Risk

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

a.Growth shares

b.Cyclical shares

c.Defensive shares

d.Income shares

45. Financial leverage helps one to estimate ____________

a.Prouction risk

b.The financial risk

c.Business and Financial risk

d.The business risk

46. 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

47. Industrial Development Bank of India is

a.Pubic Limited Company

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

c.Wholly-owned subsidiary of Reserve Bank of India

d.Wholly owned Government of India undertaking

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

a.Equity Private Selling

b.Earnings per share

c.Exchange per Share

d.Earning Preferred Stock

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

a.Welfare maximization objective

b.Wealth maximization objective

c.None of these

d.Profit maximization objective

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

a.Financial Portfolio Investment

b.Foreign Portfolio Investment

c.Financial Performance Index

d.Functional Profit Investment

51. The yield curve shows the relationship between:

a.Yield to maturity and price

b.Terms to maturaluty and price

c.Yield to maturity and terms to maturity

d.None of these

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

a.Profitable enquiry

b.Premium Exchange

c.Price-to-earning ration

d.Private Equity

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

a.Interest Risk

b.Call Risk

c.Liquidity Risk

d.Financial risk

54. The balance sheet valuation is a:

a.None of these

b.Nominal approach

c.Historical approach

d.Futuristic approach

55. Financial leverage is also known as

a.Trading on debt

b.Interest on debt

c.Interest on equity

d.Trading on equity

56. 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.Financial Decisions

c.None of these

d.Working Capital decisions

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

a.Bombay Stock Exchange

b.Balance Stock Equity

c.Balance Sheet Equity

d.Base Stock Exchange

58. Financial Management is mainly concerned with ____________

a.Arrangement of funds

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

c.Efficient Management of every business

d.Profit maximization

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

a.None of these

b.Adjusted risk

c.Non diversifiable risk

d.Diversifiable risk

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

a.Primary market

b.Secondary market

c.Mney market

d.None of these

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

a.Yield to Debit

b.Yield of Divergence

c.Year to Delivery

d.Year-to-date

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.Dividend decisions

d.Any of these

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

a.None of these

b.Asset market line

c.Capital market line

d.Security market line

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

a.None of these

b.20th Century

c.21st Century

d.19th Centruy

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

a.None of these

b.Working capital decisions

c.Short term investment decisions

d.Both a and b

66. The financial institute IFCI established in

a.1960

b.1954

c.1948

d.1945

67. 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.Collective exhausting

d.None of these

68. 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

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

a.Non-recurring finance functions

b.Recurring Finance

c.None of these

d.Both a and b

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

a.Leverage Level Committee

b.Limited Libility corporation

c.Lender of Last Commodity

d.Limited Liablity Company

71. Funds are financial resources in the form of:

a.All of these

b.Corporate Capital

c.Business funds

d.Cash Equivalents

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

a.None of these

b.Non-recurring finance functions

c.Both a and b

d.Recurring Finance

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

a.Share Capital

b.Debt Capital

c.Trade Credit

d.All of these

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

a.H model ofequity valuation

b.None of these

c.Gordon Model

d.Free cash flow models

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

a.Credit Operating Officer

b.Credit on Option

c.Certified Operating Officer

d.Chief Operating Officer

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

a.Consolidated Statistics Order

b.Chief Security Officer

c.Cabinet Security Officer

d.Current Security Officer

77. 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.2.50%

b.5%

c.10%

d.15%

78. 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

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

a.Annual General Marketing

b.Annual Gross Marketing

c.Annual Gain Margin

d.Annual General Meeting

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

a.Investment in Direct Bonds

b.International Deposit on Bonds

c.India Development Bonds

d.Insurance Development Board

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

a.Arrange of utiization of funds

b.Arrangement of financial resources

c.Effective management of capital

d.Acquiring capital assets of the organization

82. 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

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

a.Capital take Over

b.Central Trading Operation

c.Chief Technology Officer

d.Commerce Trade Officer

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

a.Technical analysis

b.None of these

c.Time series analysis

d.Cross sectional analysis

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

a.Discounting method

b.Both a and b

c.Compounding method

d.Budgeting

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

a.Quantitative Taxation Dividend

b.Quarter-to-Delivery

c.Quarter-to-Date

d.Quality Trade Division

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

a.Finance Function

b.Control Function

c.Management Funtion

d.None of these

88. 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

89. 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

90. 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

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

a.Rental Expenditure

b.Revenue expenditure

c.Capital expenditure

d.None of these

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

a.Commercial Auditor General

b.Consolidated Audit General

c.Commercial Account Growth

d.Controller and Auditor General of India

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

a.Backward approach

b.Forward approach

c.Earnings approach

d.Risk approach

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

d.None of these

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

a.Funding on Forex

b.Fresh on Funding

c.Flow Of Funds

d.Focus on Funding

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

a.Net uield Security Exchnage

b.National Stock Exchange

c.Net Asset Value

d.New York Stock Exchnage

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

a.Procurement of essential funds

b.All of these

c.Credit management

d.Cash management

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

a.Ignore risk factor

b.Ambiguity

c.All of these

d.Ignore time value of money

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

a.None of these

b.Discounting

c.Both a and b

d.Compounding

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

a.Both a and b

b.None of these

c.Relative valuation modesl

d.Dividend valuation models

Finance MCQ Quiz for Various Competitive Exams

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

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