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

a.None of these

b.Both of these

c.Capital Structure

d.Financial Structure

2. Financial leverage measures ____________

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

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

c.1% Variation in level of production

d.No change with EBIT and EPS

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

a.Both a and b

b.None of these

c.Non-recurring finance functions

d.Recurring Finance

4. 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.Call Risk

c.Default Risk

d.Liquidity Risk

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

a.Quarter-to-Date

b.Quality Trade Division

c.Quarter-to-Delivery

d.Quantitative Taxation Dividend

6. Financial Management is mainly concerned with ____________

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

b.Efficient Management of every business

c.Profit maximization

d.Arrangement of funds

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

a.Wealth Maximization

b.Profit Maximization

c.Any of these

d.Welfare maximization

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

a.Limited Liablity Company

b.Leverage Level Committee

c.Limited Libility corporation

d.Lender of Last Commodity

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

a.Cash management

b.All of these

c.Procurement of essential funds

d.Credit management

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

a.Ignore time value of money

b.Ambiguity

c.Ignore risk factor

d.All of these

11. The balance sheet valuation is a:

a.Futuristic approach

b.Historical approach

c.None of these

d.Nominal approach

12. Financial controller is responsible

a.Credit Management

b.None of these

c.Cash Management

d.Securities Management

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

a.Controller and Auditor General of India

b.Consolidated Audit General

c.Commercial Auditor General

d.Commercial Account Growth

14. Funds are financial resources in the form of:

a.Corporate Capital

b.Business funds

c.All of these

d.Cash Equivalents

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

a.Arrange of utiization of funds

b.Acquiring capital assets of the organization

c.Arrangement of financial resources

d.Effective management of capital

16. The yield curve shows the relationship between:

a.Yield to maturity and price

b.Yield to maturity and terms to maturity

c.Terms to maturaluty and price

d.None of these

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

a.Mutual Fund

b.Financial Month

c.Market with finance

d.Maturity for

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

a.Financial Asset

b.Real Asset

c.Tangible Asset

d.Fictitious asset

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

a.Annuity

b.Reovery Factor

c.Discounting

d.Compounding

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

a.Upwards

b.Downwards

c.Any Pattern

d.Humped

21. 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

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

a.Wage Capital

b.Working capital

c.Wage Collateral

d.Withdraw Cash

23. Business finance deals with which of the following?

a.Procuring funds from different sources on fair terms

b.None of these

c.Both a and b

d.Utilize funds efficiently

24. 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.None of these

d.Timing

25. 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.All of these

d.Wealth

26. 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.15%

c.5%

d.10%

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

a.Less than 0

b.Greater than 0

c.Equal to 0

d.Negative

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

a.Annual Gross Marketing

b.Annual General Marketing

c.Annual Gain Margin

d.Annual General Meeting

29. Financial decisions involve ____________

a.Financing cash decisions

b.investment sales decisions

c.investment dividend decisions

d.Investment, Financing and dividend decisions

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

a.India Development Bonds

b.Insurance Development Board

c.International Deposit on Bonds

d.Investment in Direct Bonds

31. Industrial Development Bank of India is

a.Pubic Limited Company

b.Wholly-owned subsidiary of Reserve Bank of India

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

d.Wholly owned Government of India undertaking

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

a.Technical analysis

b.Cross sectional analysis

c.None of these

d.Time series analysis

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

a.19th Centruy

b.20th Century

c.None of these

d.21st Century

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

a.Commerce Trade Officer

b.Capital take Over

c.Chief Technology Officer

d.Central Trading Operation

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

a.Active Resource for Investment and Management

b.Auxiliary Revenue for Investing on Market

c.Autonomous Resource for International Movement Association

d.Auto-Regressive Integrated Moving Average

36. 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

37. 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.Control Function

d.Management Funtion

38. 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

39. The main components of capital budgeting are:

a.Capital expenditure

b.Capital expenditure and Budgeting

c.none of these

d.Budgeting

40. The financial institute IFCI established in

a.1948

b.1954

c.1945

d.1960

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

a.Current return

b.Capital return

c.Total return

d.None of these

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

a.Budgeting

b.Compounding method

c.Both a and b

d.Discounting method

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

a.Cyclical shares

b.Blue chip shares

c.Growth shares

d.Income shares

44. 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

45. Current yield is equal to What?

a.Market yield

b.Income yield

c.Any of these

d.Running Yield

46. 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

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

a.Automatic Teller Machine

b.Automated Teller Machine

c.Authorized Teller Machine

d.Auto Teller Machine

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

a.Yield to Debit

b.Year-to-date

c.Year to Delivery

d.Yield of Divergence

49. 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

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

a.Operating lease

b.Direct leasing arrangement

c.Sales and leaseback

d.Leveraged lease

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

a.Income shares

b.Cyclical shares

c.Defensive shares

d.Growth shares

52. 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

53. Not measurable time is?

a.Uncertainty

b.All of these

c.Certainty

d.Risk

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

a.None of these

b.Short term investment decisions

c.Working capital decisions

d.Both a and b

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

a.Interest Risk

b.Financial risk

c.Call Risk

d.Liquidity Risk

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

a.Highly negative

b.Non correlation

c.Negative

d.Highly positive

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

a.Flat

b.Humped slope

c.Downward slope

d.Upwards slope

58. 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

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

a.Earnings

b.Cash flows

c.Expected dividends

d.All of these

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

a.Profit maximization objective

b.Wealth maximization objective

c.Welfare maximization objective

d.None of these

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

a.Money Market

b.Middle Market

c.Management Key Trading

d.Mutual Market Trading

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

a.Revenue expenditure

b.None of these

c.Rental Expenditure

d.Capital expenditure

63. 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

64. 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.10%

b.15%

c.20%

d.25%

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

a.Focus on Funding

b.Flow Of Funds

c.Funding on Forex

d.Fresh on Funding

66. 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

67. 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 equal to the nominal return

c.None of these

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

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

a.Pittables debentures

b.Commodity linked bonds

c.Zero coupon bonds

d.Plain Vanilla bonds

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

a.Diversifiable risk

b.Adjusted risk

c.None of these

d.Non diversifiable risk

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

a.Capital recovery factor

b.Compounding factor

c.None of these

d.Discounted factor

71. Financial leverage is also known as

a.Trading on equity

b.Trading on debt

c.Interest on debt

d.Interest on equity

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

a.Financial Risk

b.Business Risk

c.Liquidity Risk

d.Interest Risk

73. Financial leverage helps one to estimate ____________

a.Business and Financial risk

b.The business risk

c.The financial risk

d.Prouction risk

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

a.Premium Exchange

b.Profitable enquiry

c.Price-to-earning ration

d.Private Equity

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

a.Risk

b.All of these

c.Control

d.Cost of Capital

76. 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 and Long Term

d.Medium Term

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

a.Non diversifiable risk

b.Unsystematic risk

c.None of these

d.systematic risk

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

a.Exchange per Share

b.Earning Preferred Stock

c.Earnings per share

d.Equity Private Selling

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

a.None of these

b.Capital market line

c.Security market line

d.Asset market line

80. 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.Risk free rate of return

c.Inflation premium

d.Risk premium

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

a.Annual Financial Stock

b.Available For Stock

c.Available For Sale

d.Annual Foreign Stock

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

a.Negative

b.Zero

c.Perfectly negative

d.Positive

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

a.Primary market

b.Secondary market

c.None of these

d.Mney market

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

a.Chief Security Officer

b.Current Security Officer

c.Consolidated Statistics Order

d.Cabinet Security Officer

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

a.Non Hiring Business

b.Native Hidden Brokerage

c.National Housing and Building Association

d.National Housing Bank

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

a.Chief Operating Officer

b.Credit on Option

c.Credit Operating Officer

d.Certified Operating Officer

87. 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

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

a.Beginning price of security

b.Total beginning price and ending price of security

c.Ending price of security

d.Difference between beginning price and ending price of security

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

a.Asynchronous Transfer Mode

b.Annual Trade Marketing

c.Asymmetric Transfer Mode

d.Account Transaction Mode

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

a.Profit and Loss

b.Planning and Leaving

c.Premium and Liability

d.Promoting and Liquidity

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

a.Foreign Portfolio Investment

b.Financial Performance Index

c.Functional Profit Investment

d.Financial Portfolio Investment

92. 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

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

a.Central Committee Exchange Act

b.Cabinet Committee on Economic Affairs

c.Central Commerce Economic Affairs

d.Certified Commerce Exchange Act

94. 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

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

a.To distribute it as dividend to the shareholders

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

c.None of these

d.Either a or b

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

a.New York Stock Exchnage

b.Net Asset Value

c.National Stock Exchange

d.Net uield Security Exchnage

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

a.Earnings approach

b.Forward approach

c.Risk approach

d.Backward approach

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

a.Balance Stock Equity

b.Balance Sheet Equity

c.Base Stock Exchange

d.Bombay Stock Exchange

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

a.Dividend decisions

b.Finance decisions

c.Any of these

d.Investment Decision

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

a.Trade Credit

b.All of these

c.Share Capital

d.Debt Capital

Finance MCQ Quiz for Various Competitive Exams

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

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