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. Current yield is equal to What?

a.Income yield

b.Any of these

c.Running Yield

d.Market yield

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

a.Fictitious asset

b.Real Asset

c.Financial Asset

d.Tangible Asset

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

a.Debt Capital

b.All of these

c.Trade Credit

d.Share Capital

4. Business finance deals with which of the following?

a.Procuring funds from different sources on fair terms

b.Utilize funds efficiently

c.Both a and b

d.None of these

5. 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.None of these

c.Capital bbudgeting decisions

d.Financial Decisions

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

a.Yield of Divergence

b.Year-to-date

c.Year to Delivery

d.Yield to Debit

7. 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.Risk premium

d.Inflation premium

8. 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

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

a.Mney market

b.None of these

c.Primary market

d.Secondary market

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

a.Lender of Last Commodity

b.Limited Liablity Company

c.Limited Libility corporation

d.Leverage Level Committee

11. Yield to maturity is what?

a.Combination of current yield and annual apppreciation

b.None of the above

c.Annual appreciation or depreciation

d.Current yield

12. 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

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

a.Highly positive

b.Highly negative

c.Negative

d.Non correlation

14. 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.15%

c.5%

d.2.50%

15. 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.None of these

d.Compounding

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

a.Total beginning price and ending price of security

b.Difference between beginning price and ending price of security

c.Ending price of security

d.Beginning price of security

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

a.Liquidity Risk

b.Financial Risk

c.Call Risk

d.Default Risk

18. 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

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

a.Leveraged lease

b.Operating lease

c.Direct leasing arrangement

d.Sales and leaseback

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

a.Equity Private Selling

b.Earning Preferred Stock

c.Exchange per Share

d.Earnings per share

21. Financial leverage helps one to estimate ____________

a.Prouction risk

b.Business and Financial risk

c.The business risk

d.The financial risk

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

a.19th Centruy

b.21st Century

c.20th Century

d.None of these

23. 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

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

a.Account Transaction Mode

b.Annual Trade Marketing

c.Asymmetric Transfer Mode

d.Asynchronous Transfer Mode

25. 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

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

a.Available For Stock

b.Available For Sale

c.Annual Foreign Stock

d.Annual Financial Stock

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

a.Medium Term and Long Term

b.Short Term

c.Medium Term

d.Long Term

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

a.Net uield Security Exchnage

b.Net Asset Value

c.National Stock Exchange

d.New York Stock Exchnage

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

a.Profitable enquiry

b.Price-to-earning ration

c.Premium Exchange

d.Private Equity

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

a.Maturity for

b.Financial Month

c.Mutual Fund

d.Market with finance

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

a.Recurring Finance

b.Non-recurring finance functions

c.None of these

d.Both a and b

32. 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

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

a.Interest Risk

b.Liquidity Risk

c.Call Risk

d.Financial risk

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

a.Credit Operating Officer

b.Certified Operating Officer

c.Chief Operating Officer

d.Credit on Option

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

a.Discounted Prices

b.Market Price

c.Augmented price

d.Shadow prices

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

a.Wage Capital

b.Working capital

c.Withdraw Cash

d.Wage Collateral

37. 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.15%

c.20%

d.10%

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

a.Focus on Funding

b.Fresh on Funding

c.Flow Of Funds

d.Funding on Forex

39. 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

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

a.Wealth Maximization

b.Any of these

c.Profit Maximization

d.Welfare maximization

41. Financial leverage is also known as

a.Trading on equity

b.Interest on equity

c.Interest on debt

d.Trading on debt

42. Financial decisions involve ____________

a.investment sales decisions

b.Financing cash decisions

c.investment dividend decisions

d.Investment, Financing and dividend decisions

43. 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

44. 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

45. 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

46. 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

47. The financial institute IFCI established in

a.1948

b.1945

c.1954

d.1960

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

a.Quarter-to-Date

b.Quality Trade Division

c.Quarter-to-Delivery

d.Quantitative Taxation Dividend

49. 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

50. Financial controller is responsible

a.Cash Management

b.None of these

c.Securities Management

d.Credit Management

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

a.Either collective exhausting or mutually inclusive

b.Collective exhausting

c.None of these

d.Mutually inclusive

52. 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

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

a.Relative valuation modesl

b.Both a and b

c.None of these

d.Dividend valuation models

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

a.Active Resource for Investment and Management

b.Auto-Regressive Integrated Moving Average

c.Autonomous Resource for International Movement Association

d.Auxiliary Revenue for Investing on Market

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

a.Cyclical shares

b.Growth shares

c.Defensive shares

d.Income shares

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

a.Money Market

b.Management Key Trading

c.Middle Market

d.Mutual Market Trading

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

a.Plain Vanilla bonds

b.Zero coupon bonds

c.Commodity linked bonds

d.Pittables debentures

58. 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.Upwards slope

d.Humped slope

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

a.National Stock Exchange

b.Native Sensex Efficiency

c.National Export in Shares

d.National Shares and Equities

60. 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

61. The yield curve shows the relationship between:

a.None of these

b.Yield to maturity and terms to maturity

c.Terms to maturaluty and price

d.Yield to maturity and price

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

a.Ignore risk factor

b.Ambiguity

c.Ignore time value of money

d.All of these

63. 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

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

a.Cash management

b.Credit management

c.Procurement of essential funds

d.All of these

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

a.Capital market line

b.Asset market line

c.None of these

d.Security market line

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

a.None of these

b.Capital recovery factor

c.Discounted factor

d.Compounding factor

67. The balance sheet valuation is a:

a.Historical approach

b.Nominal approach

c.Futuristic approach

d.None of these

68. 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.Cyclical shares

c.Income shares

d.Growth shares

69. 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.Wealth

c.All of these

d.Payoff

70. 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

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

a.Fast Credits on Conservative Basis

b.Foreign Currency Convertible Bond

c.Financial Committee for Certified Business

d.Food and Finance Corporation Board

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

a.Zero

b.Negative

c.Perfectly negative

d.Positive

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

a.Capital expenditure

b.None of these

c.Revenue expenditure

d.Rental Expenditure

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

a.Budgeting

b.Discounting method

c.Compounding method

d.Both a and b

75. Funds are financial resources in the form of:

a.All of these

b.Cash Equivalents

c.Business funds

d.Corporate Capital

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

a.Promoting and Liquidity

b.Profit and Loss

c.Planning and Leaving

d.Premium and Liability

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

a.Functional Profit Investment

b.Financial Portfolio Investment

c.Foreign Portfolio Investment

d.Financial Performance Index

78. 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

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

a.Any Pattern

b.Upwards

c.Downwards

d.Humped

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

a.Negative

b.Equal to 0

c.Less than 0

d.Greater than 0

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

a.Current Security Officer

b.Cabinet Security Officer

c.Chief Security Officer

d.Consolidated Statistics Order

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

a.Liquidity Risk

b.Financial Risk

c.Interest Risk

d.Business Risk

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

a.Acquiring capital assets of the organization

b.Arrangement of financial resources

c.Arrange of utiization of funds

d.Effective management of capital

84. 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.All of these

c.Business Finance

d.Public Finance

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

a.Earnings

b.Cash flows

c.All of these

d.Expected dividends

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

a.Earnings approach

b.Backward approach

c.Risk approach

d.Forward approach

87. 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

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

a.Balance Stock Equity

b.Balance Sheet Equity

c.Bombay Stock Exchange

d.Base Stock Exchange

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

a.Annual General Meeting

b.Annual General Marketing

c.Annual Gain Margin

d.Annual Gross Marketing

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

a.Capital take Over

b.Commerce Trade Officer

c.Central Trading Operation

d.Chief Technology Officer

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

a.Total return

b.Total risk

c.Dividend

d.Premium

92. The main components of capital budgeting are:

a.Capital expenditure

b.Capital expenditure and Budgeting

c.Budgeting

d.none of these

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

a.Native Hidden Brokerage

b.National Housing and Building Association

c.National Housing Bank

d.Non Hiring Business

94. Not measurable time is?

a.All of these

b.Risk

c.Uncertainty

d.Certainty

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

a.International Deposit on Bonds

b.India Development Bonds

c.Investment in Direct Bonds

d.Insurance Development Board

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

a.Gordon Model

b.H model ofequity valuation

c.Free cash flow models

d.None of these

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

a.Both a and b

b.Non-recurring finance functions

c.Recurring Finance

d.None of these

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

a.All of these

b.Cost of Capital

c.Risk

d.Control

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

a.Auto Teller Machine

b.Automated Teller Machine

c.Authorized Teller Machine

d.Automatic Teller Machine

100. 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

Finance MCQ Quiz for Various Competitive Exams

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

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