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. 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

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

a.National Housing and Building Association

b.National Housing Bank

c.Native Hidden Brokerage

d.Non Hiring Business

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

a.Equity Private Selling

b.Earning Preferred Stock

c.Exchange per Share

d.Earnings per share

4. The balance sheet valuation is a:

a.Historical approach

b.Futuristic approach

c.None of these

d.Nominal approach

5. 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%

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

a.Total beginning price and ending price of security

b.Ending price of security

c.Difference between beginning price and ending price of security

d.Beginning price of security

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

a.Gordon Model

b.Free cash flow models

c.None of these

d.H model ofequity valuation

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

a.All of these

b.Payoff

c.Wealth

d.Benefits

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

a.Non diversifiable risk

b.Adjusted risk

c.None of these

d.Diversifiable risk

10. Financial leverage measures ____________

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

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

c.1% Variation in level of production

d.No change with EBIT and EPS

11. Financial controller is responsible

a.Credit Management

b.Securities Management

c.None of these

d.Cash Management

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

a.Account Transaction Mode

b.Asynchronous Transfer Mode

c.Asymmetric Transfer Mode

d.Annual Trade Marketing

13. 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.25%

b.20%

c.10%

d.15%

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

a.Consolidated Statistics Order

b.Chief Security Officer

c.Cabinet Security Officer

d.Current Security Officer

15. 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

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

a.Leverage Level Committee

b.Limited Liablity Company

c.Limited Libility corporation

d.Lender of Last Commodity

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

a.Auxiliary Revenue for Investing on Market

b.Active Resource for Investment and Management

c.Autonomous Resource for International Movement Association

d.Auto-Regressive Integrated Moving Average

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

a.Revenue expenditure

b.Rental Expenditure

c.Capital expenditure

d.None of these

19. The main components of capital budgeting are:

a.none of these

b.Capital expenditure

c.Budgeting

d.Capital expenditure and Budgeting

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

a.Compounding method

b.Both a and b

c.Discounting method

d.Budgeting

21. Not measurable time is?

a.Uncertainty

b.Risk

c.Certainty

d.All of these

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

a.Positive

b.Perfectly negative

c.Negative

d.Zero

23. Financial decisions involve ____________

a.investment dividend decisions

b.Investment, Financing and dividend decisions

c.investment sales decisions

d.Financing cash decisions

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

a.Income shares

b.Cyclical shares

c.Growth shares

d.Defensive shares

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

a.Asset market line

b.Security market line

c.Capital market line

d.None of these

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

a.Wealth maximization objective

b.Welfare maximization objective

c.Profit maximization objective

d.None of these

27. 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

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

a.Available For Stock

b.Available For Sale

c.Annual Foreign Stock

d.Annual Financial Stock

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

a.Non-recurring finance functions

b.None of these

c.Both a and b

d.Recurring Finance

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

a.Non correlation

b.Highly positive

c.Highly negative

d.Negative

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

a.Both a and b

b.Compounding

c.Discounting

d.None of these

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

a.Bombay Stock Exchange

b.Balance Stock Equity

c.Base Stock Exchange

d.Balance Sheet Equity

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

a.Interest Risk

b.Liquidity Risk

c.Financial Risk

d.Business Risk

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

a.All of these

b.Ignore time value of money

c.Ignore risk factor

d.Ambiguity

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

a.Any of these

b.Dividend decisions

c.Investment Decision

d.Finance decisions

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

a.Working capital

b.Wage Capital

c.Withdraw Cash

d.Wage Collateral

37. 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

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

a.Any Pattern

b.Humped

c.Upwards

d.Downwards

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

a.Total return

b.None of these

c.Current return

d.Capital return

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

a.Foreign Portfolio Investment

b.Financial Performance Index

c.Financial Portfolio Investment

d.Functional Profit Investment

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

a.Arrangement of financial resources

b.Arrange of utiization of funds

c.Acquiring capital assets of the organization

d.Effective management of capital

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

a.Chief Technology Officer

b.Central Trading Operation

c.Capital take Over

d.Commerce Trade Officer

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

a.None of these

b.Cross sectional analysis

c.Time series analysis

d.Technical analysis

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

a.Real Asset

b.Tangible Asset

c.Fictitious asset

d.Financial Asset

45. 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

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

a.Profit Maximization

b.Welfare maximization

c.Wealth Maximization

d.Any of these

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

a.None of these

b.Working capital decisions

c.Both a and b

d.Short term investment decisions

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

a.Total return

b.Dividend

c.Premium

d.Total risk

49. 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.Risk free rate of return

c.Required rate of return

d.Risk premium

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

a.Central Committee Exchange Act

b.Certified Commerce Exchange Act

c.Cabinet Committee on Economic Affairs

d.Central Commerce Economic Affairs

51. 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

52. Funds are financial resources in the form of:

a.Business funds

b.All of these

c.Cash Equivalents

d.Corporate Capital

53. 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.Default Risk

d.Call Risk

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

a.Blue chip shares

b.Growth shares

c.Cyclical shares

d.Income shares

55. 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

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

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

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

c.None of these

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

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

a.To distribute it as dividend to the shareholders

b.None of these

c.Either a or b

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

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

a.Medium Term

b.Medium Term and Long Term

c.Long Term

d.Short Term

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

a.Commercial Auditor General

b.Controller and Auditor General of India

c.Consolidated Audit General

d.Commercial Account Growth

60. 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

61. 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.None of these

d.Timing and Risk

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

a.Trade Credit

b.All of these

c.Debt Capital

d.Share Capital

63. 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.Liquidity Risk

d.Interest Risk

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

a.Yield of Divergence

b.Year-to-date

c.Yield to Debit

d.Year to Delivery

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

a.Maturity for

b.Financial Month

c.Mutual Fund

d.Market with finance

66. Financial leverage is also known as

a.Interest on debt

b.Trading on debt

c.Trading on equity

d.Interest on equity

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

a.None of these

b.Capital recovery factor

c.Compounding factor

d.Discounted factor

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

a.Promoting and Liquidity

b.Profit and Loss

c.Premium and Liability

d.Planning and Leaving

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

a.Discounting

b.Compounding

c.Reovery Factor

d.Annuity

70. 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

71. Yield to maturity is what?

a.Current yield

b.Annual appreciation or depreciation

c.Combination of current yield and annual apppreciation

d.None of the above

72. 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.Business Finance

b.All of these

c.Private Finance

d.Public Finance

73. 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.Financial Decisions

b.Capital bbudgeting decisions

c.None of these

d.Working Capital decisions

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

a.Middle Market

b.Money Market

c.Management Key Trading

d.Mutual Market Trading

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

a.systematic risk

b.Non diversifiable risk

c.Unsystematic risk

d.None of these

76. The yield curve shows the relationship between:

a.Yield to maturity and price

b.Yield to maturity and terms to maturity

c.None of these

d.Terms to maturaluty and price

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

a.Risk approach

b.Backward approach

c.Forward approach

d.Earnings approach

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

a.Greater than 0

b.Equal to 0

c.Less than 0

d.Negative

79. Industrial Development Bank of India is

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

b.Wholly owned Government of India undertaking

c.Wholly-owned subsidiary of Reserve Bank of India

d.Pubic Limited Company

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

a.Management Funtion

b.Control Function

c.Finance Function

d.None of these

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

a.Automatic Teller Machine

b.Automated Teller Machine

c.Authorized Teller Machine

d.Auto Teller Machine

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

a.Certified Operating Officer

b.Chief Operating Officer

c.Credit on Option

d.Credit Operating Officer

83. Financial leverage helps one to estimate ____________

a.Business and Financial risk

b.The business risk

c.Prouction risk

d.The financial risk

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

a.Fast Credits on Conservative Basis

b.Financial Committee for Certified Business

c.Food and Finance Corporation Board

d.Foreign Currency Convertible Bond

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

a.Earnings

b.Expected dividends

c.Cash flows

d.All of these

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

a.Quantitative Taxation Dividend

b.Quarter-to-Date

c.Quarter-to-Delivery

d.Quality Trade Division

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

a.Plain Vanilla bonds

b.Commodity linked bonds

c.Pittables debentures

d.Zero coupon bonds

88. The financial institute IFCI established in

a.1954

b.1960

c.1948

d.1945

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

a.Funding on Forex

b.Fresh on Funding

c.Focus on Funding

d.Flow Of Funds

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

a.None of these

b.Relative valuation modesl

c.Dividend valuation models

d.Both a and b

91. 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.Both a and b

d.None of these

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

a.National Stock Exchange

b.National Shares and Equities

c.National Export in Shares

d.Native Sensex Efficiency

93. Current yield is equal to What?

a.Running Yield

b.Market yield

c.Income yield

d.Any of these

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

a.Leveraged lease

b.Operating lease

c.Sales and leaseback

d.Direct leasing arrangement

95. 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

96. Business finance deals with which of the following?

a.None of these

b.Both a and b

c.Procuring funds from different sources on fair terms

d.Utilize funds efficiently

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

a.All of these

b.Credit management

c.Procurement of essential funds

d.Cash management

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

a.Price-to-earning ration

b.Profitable enquiry

c.Private Equity

d.Premium Exchange

99. 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.Mutually inclusive

d.Collective exhausting

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

a.Annual Gross Marketing

b.Annual General Marketing

c.Annual General Meeting

d.Annual Gain Margin

Finance MCQ Quiz for Various Competitive Exams

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

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