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 "BSE"?

a.Balance Stock Equity

b.Base Stock Exchange

c.Bombay Stock Exchange

d.Balance Sheet Equity

2. 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

3. Not measurable time is?

a.Uncertainty

b.Risk

c.All of these

d.Certainty

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

a.Focus on Funding

b.Fresh on Funding

c.Flow Of Funds

d.Funding on Forex

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

a.Sales and leaseback

b.Operating lease

c.Leveraged lease

d.Direct leasing arrangement

6. Financial decisions involve ____________

a.Investment, Financing and dividend decisions

b.investment sales decisions

c.Financing cash decisions

d.investment dividend decisions

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

a.Short term investment decisions

b.Both a and b

c.Working capital decisions

d.None of these

8. 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

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

a.Greater than 0

b.Less than 0

c.Equal to 0

d.Negative

10. 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

11. Financial leverage helps one to estimate ____________

a.The business risk

b.The financial risk

c.Prouction risk

d.Business and Financial risk

12. Funds are financial resources in the form of:

a.Cash Equivalents

b.Business funds

c.All of these

d.Corporate Capital

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

a.All of these

b.Procurement of essential funds

c.Cash management

d.Credit management

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

a.Medium Term

b.Short Term

c.Medium Term and Long Term

d.Long Term

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

a.None of these

b.Either collective exhausting or mutually inclusive

c.Collective exhausting

d.Mutually inclusive

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

a.Tangible Asset

b.Real Asset

c.Financial Asset

d.Fictitious asset

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

a.Cabinet Committee on Economic Affairs

b.Certified Commerce Exchange Act

c.Central Committee Exchange Act

d.Central Commerce Economic Affairs

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

a.All of these

b.Ignore time value of money

c.Ambiguity

d.Ignore risk factor

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

a.Net Asset Value

b.Net uield Security Exchnage

c.National Stock Exchange

d.New York Stock Exchnage

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

a.Foreign Portfolio Investment

b.Functional Profit Investment

c.Financial Portfolio Investment

d.Financial Performance Index

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

a.Mutual Market Trading

b.Money Market

c.Middle Market

d.Management Key Trading

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

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

b.To distribute it as dividend to the shareholders

c.Either a or b

d.None of these

23. 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

24. 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

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

a.20th Century

b.None of these

c.19th Centruy

d.21st Century

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

a.Active Resource for Investment and Management

b.Auto-Regressive Integrated Moving Average

c.Auxiliary Revenue for Investing on Market

d.Autonomous Resource for International Movement Association

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

a.None of these

b.Secondary market

c.Mney market

d.Primary market

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

a.Negative

b.Positive

c.Perfectly negative

d.Zero

29. 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

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

a.Price-to-earning ration

b.Premium Exchange

c.Private Equity

d.Profitable enquiry

31. 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.Risk premium

c.Required rate of return

d.Inflation premium

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

a.Leverage Level Committee

b.Limited Libility corporation

c.Lender of Last Commodity

d.Limited Liablity Company

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

a.Pittables debentures

b.Commodity linked bonds

c.Plain Vanilla bonds

d.Zero coupon bonds

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

a.Maturity for

b.Financial Month

c.Market with finance

d.Mutual Fund

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

a.Year-to-date

b.Yield to Debit

c.Yield of Divergence

d.Year to Delivery

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

a.Commercial Auditor General

b.Controller and Auditor General of India

c.Commercial Account Growth

d.Consolidated Audit General

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

a.Ending price of security

b.Total beginning price and ending price of security

c.Beginning price of security

d.Difference between beginning price and ending price of security

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

a.Current Security Officer

b.Cabinet Security Officer

c.Consolidated Statistics Order

d.Chief Security Officer

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

a.Discounting

b.None of these

c.Both a and b

d.Compounding

40. 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

41. The main components of capital budgeting are:

a.Capital expenditure

b.none of these

c.Budgeting

d.Capital expenditure and Budgeting

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

a.Both of these

b.None of these

c.Financial Structure

d.Capital Structure

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

a.Financial risk

b.Call Risk

c.Interest Risk

d.Liquidity Risk

44. 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.Private Finance

c.Business Finance

d.Public Finance

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

a.Acquiring capital assets of the organization

b.Arrangement of financial resources

c.Effective management of capital

d.Arrange of utiization of funds

46. The balance sheet valuation is a:

a.None of these

b.Nominal approach

c.Futuristic approach

d.Historical approach

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

a.Account Transaction Mode

b.Asymmetric Transfer Mode

c.Asynchronous Transfer Mode

d.Annual Trade Marketing

48. The financial institute IFCI established in

a.1948

b.1945

c.1954

d.1960

49. The yield curve shows the relationship between:

a.Yield to maturity and price

b.None of these

c.Terms to maturaluty and price

d.Yield to maturity and terms to maturity

50. 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%

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

a.None of these

b.Non-recurring finance functions

c.Recurring Finance

d.Both a and b

52. 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

53. 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.15%

c.25%

d.10%

54. Financial leverage measures ____________

a.No change with EBIT and EPS

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.1% Variation in level of production

55. Business finance deals with which of the following?

a.Both a and b

b.Utilize funds efficiently

c.None of these

d.Procuring funds from different sources on fair terms

56. Current yield is equal to What?

a.Any of these

b.Running Yield

c.Market yield

d.Income yield

57. 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.Growth shares

d.Blue chip shares

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

a.Financial Risk

b.Liquidity Risk

c.Business Risk

d.Interest Risk

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

a.Wealth Maximization

b.Profit Maximization

c.Welfare maximization

d.Any of these

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

a.Adjusted risk

b.Non diversifiable risk

c.None of these

d.Diversifiable risk

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

a.All of these

b.Expected dividends

c.Cash flows

d.Earnings

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

a.Debt Capital

b.Share Capital

c.Trade Credit

d.All of these

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

a.Quarter-to-Date

b.Quantitative Taxation Dividend

c.Quarter-to-Delivery

d.Quality Trade Division

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

a.Dividend

b.Total return

c.Premium

d.Total risk

65. 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

66. 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.Discounted Prices

c.Market Price

d.Shadow prices

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

a.Earnings per share

b.Equity Private Selling

c.Exchange per Share

d.Earning Preferred Stock

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

a.Promoting and Liquidity

b.Planning and Leaving

c.Premium and Liability

d.Profit and Loss

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

a.Wage Collateral

b.Working capital

c.Withdraw Cash

d.Wage Capital

70. Industrial Development Bank of India is

a.Wholly owned Government of India undertaking

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

c.Wholly-owned subsidiary of Reserve Bank of India

d.Pubic Limited Company

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

a.Certified Operating Officer

b.Credit Operating Officer

c.Chief Operating Officer

d.Credit on Option

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

a.Chief Technology Officer

b.Capital take Over

c.Commerce Trade Officer

d.Central Trading Operation

73. 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

74. 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.Dividend valuation models

d.None of these

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

a.Annual General Marketing

b.Annual Gross Marketing

c.Annual Gain Margin

d.Annual General Meeting

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

a.Free cash flow models

b.None of these

c.Gordon Model

d.H model ofequity valuation

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

a.Downwards

b.Upwards

c.Any Pattern

d.Humped

78. 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

79. 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.None of these

d.Capital bbudgeting decisions

80. 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.None of these

c.Compounding

d.Annuity

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

a.Native Hidden Brokerage

b.National Housing Bank

c.Non Hiring Business

d.National Housing and Building Association

82. Financial controller is responsible

a.Securities Management

b.Cash Management

c.Credit Management

d.None of these

83. 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.All of these

d.Wealth

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

a.Security market line

b.Capital market line

c.Asset market line

d.None of these

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

a.Backward approach

b.Earnings approach

c.Forward approach

d.Risk approach

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

a.Rental Expenditure

b.Capital expenditure

c.None of these

d.Revenue expenditure

87. 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

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

a.Annuity

b.Discounting

c.Reovery Factor

d.Compounding

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

a.None of these

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

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

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

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

a.Available For Sale

b.Annual Financial Stock

c.Annual Foreign Stock

d.Available For Stock

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

a.Auto Teller Machine

b.Authorized Teller Machine

c.Automatic Teller Machine

d.Automated Teller Machine

92. 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

93. 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.Flat

d.Humped slope

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

a.Cross sectional analysis

b.Technical analysis

c.Time series analysis

d.None of these

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

a.India Development Bonds

b.International Deposit on Bonds

c.Insurance Development Board

d.Investment in Direct Bonds

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

a.Welfare maximization objective

b.Profit maximization objective

c.None of these

d.Wealth maximization objective

97. 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

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

a.Growth shares

b.Defensive shares

c.Income shares

d.Cyclical shares

99. Financial leverage is also known as

a.Trading on debt

b.Trading on equity

c.Interest on debt

d.Interest on equity

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

a.Compounding factor

b.Discounted factor

c.Capital recovery factor

d.None of these

Finance MCQ Quiz for Various Competitive Exams

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

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