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 "QTD"?

a.Quarter-to-Date

b.Quantitative Taxation Dividend

c.Quality Trade Division

d.Quarter-to-Delivery

2. 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

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

a.Forward approach

b.Risk approach

c.Backward approach

d.Earnings approach

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

a.Ending price of security

b.Difference between beginning price and ending price of security

c.Beginning price of security

d.Total beginning price and ending price of security

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

a.Financial Performance Index

b.Foreign Portfolio Investment

c.Functional Profit Investment

d.Financial Portfolio Investment

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

a.Both a and b

b.Compounding

c.None of these

d.Discounting

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

a.Account Transaction Mode

b.Asymmetric Transfer Mode

c.Annual Trade Marketing

d.Asynchronous Transfer Mode

8. 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.Both a and b

d.Recurring Finance

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

a.Recurring Finance

b.Non-recurring finance functions

c.None of these

d.Both a and b

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

a.Commercial Auditor General

b.Consolidated Audit General

c.Controller and Auditor General of India

d.Commercial Account Growth

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

a.Defensive shares

b.Income shares

c.Growth shares

d.Cyclical shares

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

a.Humped slope

b.Flat

c.Downward slope

d.Upwards slope

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

a.Food and Finance Corporation Board

b.Foreign Currency Convertible Bond

c.Fast Credits on Conservative Basis

d.Financial Committee for Certified Business

14. Financial decisions involve ____________

a.investment sales decisions

b.Investment, Financing and dividend decisions

c.investment dividend decisions

d.Financing cash decisions

15. Business finance deals with which of the following?

a.Procuring funds from different sources on fair terms

b.None of these

c.Utilize funds efficiently

d.Both a and b

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

a.Any of these

b.Welfare maximization

c.Profit Maximization

d.Wealth Maximization

17. 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

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

a.Total risk

b.Dividend

c.Total return

d.Premium

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

a.Cabinet Committee on Economic Affairs

b.Certified Commerce Exchange Act

c.Central Commerce Economic Affairs

d.Central Committee Exchange Act

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

a.All of these

b.Cash flows

c.Earnings

d.Expected dividends

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

a.Tangible Asset

b.Fictitious asset

c.Financial Asset

d.Real Asset

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

a.Cash management

b.Credit management

c.All of these

d.Procurement of essential funds

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

a.Wealth maximization objective

b.None of these

c.Profit maximization objective

d.Welfare maximization objective

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

a.None of these

b.Capital Structure

c.Both of these

d.Financial Structure

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

a.Yield to Debit

b.Year to Delivery

c.Year-to-date

d.Yield of Divergence

26. 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.Either a or b

c.None of these

d.To distribute it as dividend to the shareholders

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

a.Price-to-earning ration

b.Premium Exchange

c.Private Equity

d.Profitable enquiry

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

a.Time series analysis

b.None of these

c.Cross sectional analysis

d.Technical analysis

29. Funds are financial resources in the form of:

a.Cash Equivalents

b.All of these

c.Business funds

d.Corporate Capital

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

a.Rental Expenditure

b.Revenue expenditure

c.Capital expenditure

d.None of these

31. 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

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

a.Arrangement of financial resources

b.Acquiring capital assets of the organization

c.Effective management of capital

d.Arrange of utiization of funds

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

a.Liquidity Risk

b.Interest Risk

c.Business Risk

d.Financial Risk

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

a.Maturity for

b.Market with finance

c.Financial Month

d.Mutual Fund

35. 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

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

a.Compounding method

b.Discounting method

c.Budgeting

d.Both a and b

37. 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.Public Finance

c.Private Finance

d.All of these

38. 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

39. The cash flows at different time periods should be made comparable to take sound Decisions by adjusting which of the following?

a.Risk

b.None of these

c.Timing and Risk

d.Timing

40. 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

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

a.Both a and b

b.None of these

c.Short term investment decisions

d.Working capital decisions

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

a.Native Sensex Efficiency

b.National Shares and Equities

c.National Export in Shares

d.National Stock Exchange

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

a.Annual Gain Margin

b.Annual General Meeting

c.Annual Gross Marketing

d.Annual General Marketing

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

a.Medium Term and Long Term

b.Long Term

c.Medium Term

d.Short Term

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

a.Total return

b.Current return

c.None of these

d.Capital return

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

a.Insurance Development Board

b.India Development Bonds

c.International Deposit on Bonds

d.Investment in Direct Bonds

47. Industrial Development Bank of India is

a.Wholly owned Government of India undertaking

b.Pubic Limited Company

c.Wholly-owned subsidiary of Reserve Bank of India

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

48. 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.Augmented price

d.Shadow prices

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

a.Non correlation

b.Highly negative

c.Highly positive

d.Negative

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

a.21st Century

b.20th Century

c.19th Centruy

d.None of these

51. The financial institute IFCI established in

a.1945

b.1954

c.1948

d.1960

52. Current yield is equal to What?

a.Market yield

b.Running Yield

c.Income yield

d.Any of these

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

a.Negative

b.Positive

c.Zero

d.Perfectly negative

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

a.Promoting and Liquidity

b.Premium and Liability

c.Planning and Leaving

d.Profit and Loss

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

a.Current Security Officer

b.Cabinet Security Officer

c.Consolidated Statistics Order

d.Chief Security Officer

56. 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%

57. Financial Management is mainly concerned with ____________

a.Efficient Management of every business

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

c.Profit maximization

d.Arrangement of funds

58. Financial leverage helps one to estimate ____________

a.Prouction risk

b.Business and Financial risk

c.The business risk

d.The financial risk

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

a.Base Stock Exchange

b.Balance Sheet Equity

c.Bombay Stock Exchange

d.Balance Stock Equity

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

a.Funding on Forex

b.Focus on Funding

c.Flow Of Funds

d.Fresh on Funding

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

a.Authorized Teller Machine

b.Automated Teller Machine

c.Auto Teller Machine

d.Automatic Teller Machine

62. Financial leverage is also known as

a.Trading on equity

b.Trading on debt

c.Interest on debt

d.Interest on equity

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.Liquidity Risk

c.Interest Risk

d.Call Risk

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

a.Downwards

b.Humped

c.Any Pattern

d.Upwards

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

a.systematic risk

b.None of these

c.Unsystematic risk

d.Non diversifiable risk

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

a.Commodity linked bonds

b.Plain Vanilla bonds

c.Zero coupon bonds

d.Pittables debentures

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

a.Dividend decisions

b.Investment Decision

c.Any of these

d.Finance decisions

68. 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.Default Risk

c.Financial Risk

d.Call Risk

69. 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

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

a.None of these

b.Discounted factor

c.Capital recovery factor

d.Compounding factor

71. 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 premium

b.Risk free rate of return

c.Required rate of return

d.Inflation premium

72. 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

73. Not measurable time is?

a.Risk

b.Uncertainty

c.Certainty

d.All of these

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

a.Withdraw Cash

b.Wage Collateral

c.Working capital

d.Wage Capital

75. 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

76. Financial controller is responsible

a.Credit Management

b.Securities Management

c.Cash Management

d.None of these

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

a.None of these

b.Non diversifiable risk

c.Adjusted risk

d.Diversifiable risk

78. Financial leverage measures ____________

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

b.1% Variation in level of production

c.No change with EBIT and EPS

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

79. Yield to maturity is what?

a.Combination of current yield and annual apppreciation

b.Annual appreciation or depreciation

c.None of the above

d.Current yield

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

a.None of these

b.Management Funtion

c.Control Function

d.Finance Function

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

a.Available For Sale

b.Annual Foreign Stock

c.Annual Financial Stock

d.Available For Stock

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

a.Operating lease

b.Sales and leaseback

c.Leveraged lease

d.Direct leasing arrangement

83. 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.Financial Decisions

d.Capital bbudgeting decisions

84. The main components of capital budgeting are:

a.Budgeting

b.Capital expenditure and Budgeting

c.Capital expenditure

d.none of these

85. 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.5%

b.2.50%

c.15%

d.10%

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

a.National Stock Exchange

b.Net Asset Value

c.Net uield Security Exchnage

d.New York Stock Exchnage

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

a.Credit Operating Officer

b.Credit on Option

c.Chief Operating Officer

d.Certified Operating Officer

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

a.Lender of Last Commodity

b.Limited Libility corporation

c.Limited Liablity Company

d.Leverage Level Committee

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

a.All of these

b.Debt Capital

c.Share Capital

d.Trade Credit

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

a.Discounting

b.Reovery Factor

c.Annuity

d.Compounding

91. 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

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

a.Exchange per Share

b.Earnings per share

c.Equity Private Selling

d.Earning Preferred Stock

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

a.Mutual Market Trading

b.Middle Market

c.Money Market

d.Management Key Trading

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

a.Greater than 0

b.Negative

c.Less than 0

d.Equal to 0

95. 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.H model ofequity valuation

d.None of these

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

a.None of these

b.Dividend valuation models

c.Relative valuation modesl

d.Both a and b

97. The balance sheet valuation is a:

a.None of these

b.Futuristic approach

c.Historical approach

d.Nominal approach

98. 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 more than the nominal return

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

d.None of these

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

a.Central Trading Operation

b.Commerce Trade Officer

c.Chief Technology Officer

d.Capital take Over

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

a.Either collective exhausting or mutually inclusive

b.None of these

c.Mutually inclusive

d.Collective exhausting

Finance MCQ Quiz for Various Competitive Exams

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

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