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

Please wait...

1. 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

2. 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

3. Financial controller is responsible

a.Securities Management

b.Credit Management

c.None of these

d.Cash Management

4. 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

5. 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.Cross sectional analysis

d.Time series analysis

6. Financial leverage measures ____________

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

b.1% Variation in level of production

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

d.No change with EBIT and EPS

7. 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

8. Financial leverage is also known as

a.Interest on debt

b.Trading on equity

c.Interest on equity

d.Trading on debt

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

a.Control Function

b.Finance Function

c.Management Funtion

d.None of these

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

a.Beginning price of security

b.Ending price of security

c.Difference between beginning price and ending price of security

d.Total beginning price and ending price of security

11. 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.15%

b.25%

c.20%

d.10%

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

a.Profit maximization objective

b.None of these

c.Wealth maximization objective

d.Welfare maximization objective

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

a.Premium Exchange

b.Private Equity

c.Price-to-earning ration

d.Profitable enquiry

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

a.Cabinet Security Officer

b.Current Security Officer

c.Consolidated Statistics Order

d.Chief Security Officer

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

a.Mney market

b.Primary market

c.Secondary market

d.None of these

16. 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.Annuity

d.Compounding

17. 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.Required rate of return

c.Risk free rate of return

d.Risk premium

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

a.Native Sensex Efficiency

b.National Stock Exchange

c.National Shares and Equities

d.National Export in Shares

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

a.Central Commerce Economic Affairs

b.Cabinet Committee on Economic Affairs

c.Certified Commerce Exchange Act

d.Central Committee Exchange Act

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

a.Capital market line

b.None of these

c.Asset market line

d.Security market line

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

a.Share Capital

b.All of these

c.Trade Credit

d.Debt Capital

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

a.Quality Trade Division

b.Quarter-to-Delivery

c.Quantitative Taxation Dividend

d.Quarter-to-Date

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

a.Upwards

b.Downwards

c.Any Pattern

d.Humped

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

a.Balance Sheet Equity

b.Balance Stock Equity

c.Bombay Stock Exchange

d.Base Stock Exchange

25. 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.None of these

d.Either a or b

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

a.Ambiguity

b.All of these

c.Ignore risk factor

d.Ignore time value of money

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

a.Negative

b.Highly negative

c.Highly positive

d.Non correlation

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

a.Negative

b.Zero

c.Perfectly negative

d.Positive

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

a.Financial Month

b.Maturity for

c.Mutual Fund

d.Market with finance

30. 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.Capital bbudgeting decisions

b.Financial Decisions

c.None of these

d.Working Capital decisions

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

a.Compounding

b.Reovery Factor

c.Discounting

d.Annuity

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

a.Profit Maximization

b.Wealth Maximization

c.Any of these

d.Welfare maximization

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

a.Yield of Divergence

b.Year-to-date

c.Yield to Debit

d.Year to Delivery

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

a.Net Asset Value

b.New York Stock Exchnage

c.National Stock Exchange

d.Net uield Security Exchnage

35. 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

36. 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

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

a.Management Key Trading

b.Mutual Market Trading

c.Middle Market

d.Money Market

38. Yield to maturity is what?

a.Current yield

b.Combination of current yield and annual apppreciation

c.Annual appreciation or depreciation

d.None of the above

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

a.Certified Operating Officer

b.Credit Operating Officer

c.Credit on Option

d.Chief Operating Officer

40. Industrial Development Bank of India is

a.Wholly-owned subsidiary of Reserve Bank of India

b.Pubic Limited Company

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

d.Wholly owned Government of India undertaking

41. Current yield is equal to What?

a.Running Yield

b.Any of these

c.Income yield

d.Market yield

42. 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.Market Price

c.Shadow prices

d.Discounted Prices

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

a.Risk

b.Control

c.All of these

d.Cost of Capital

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

a.Greater than 0

b.Equal to 0

c.Less than 0

d.Negative

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

a.None of these

b.Free cash flow models

c.H model ofequity valuation

d.Gordon Model

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

a.Commercial Auditor General

b.Consolidated Audit General

c.Commercial Account Growth

d.Controller and Auditor General of India

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

a.None of these

b.Capital expenditure

c.Rental Expenditure

d.Revenue expenditure

48. 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.15%

d.10%

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

a.All of these

b.Expected dividends

c.Cash flows

d.Earnings

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

a.Zero coupon bonds

b.Commodity linked bonds

c.Plain Vanilla bonds

d.Pittables debentures

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

a.Earnings per share

b.Earning Preferred Stock

c.Equity Private Selling

d.Exchange per Share

52. The balance sheet valuation is a:

a.Nominal approach

b.Historical approach

c.None of these

d.Futuristic approach

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

a.Planning and Leaving

b.Premium and Liability

c.Promoting and Liquidity

d.Profit and Loss

54. Not measurable time is?

a.All of these

b.Certainty

c.Uncertainty

d.Risk

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

a.Either collective exhausting or mutually inclusive

b.Mutually inclusive

c.None of these

d.Collective exhausting

56. Business finance deals with which of the following?

a.Both a and b

b.Procuring funds from different sources on fair terms

c.None of these

d.Utilize funds efficiently

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

a.Fresh on Funding

b.Flow Of Funds

c.Funding on Forex

d.Focus on Funding

58. 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

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

a.Tangible Asset

b.Financial Asset

c.Fictitious asset

d.Real Asset

60. 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.Both a and b

d.Dividend valuation models

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

a.Financial Structure

b.Capital Structure

c.None of these

d.Both of these

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

a.Short Term

b.Long Term

c.Medium Term

d.Medium Term and Long Term

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

a.Authorized Teller Machine

b.Automatic Teller Machine

c.Auto Teller Machine

d.Automated Teller Machine

64. Financial Management is mainly concerned with ____________

a.Profit maximization

b.Efficient Management of every business

c.Arrangement of funds

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

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

a.Premium

b.Total risk

c.Dividend

d.Total return

66. Funds are financial resources in the form of:

a.Cash Equivalents

b.Business funds

c.Corporate Capital

d.All of these

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

a.Asynchronous Transfer Mode

b.Annual Trade Marketing

c.Account Transaction Mode

d.Asymmetric Transfer Mode

68. The financial institute IFCI established in

a.1945

b.1948

c.1954

d.1960

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

a.Commerce Trade Officer

b.Central Trading Operation

c.Capital take Over

d.Chief Technology Officer

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

a.Cyclical shares

b.Growth shares

c.Defensive shares

d.Income shares

71. Financial leverage helps one to estimate ____________

a.Business and Financial risk

b.The business risk

c.The financial risk

d.Prouction risk

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

a.Fast Credits on Conservative Basis

b.Food and Finance Corporation Board

c.Foreign Currency Convertible Bond

d.Financial Committee for Certified Business

73. 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.Income shares

c.Growth shares

d.Cyclical shares

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

a.Annual Gain Margin

b.Annual General Marketing

c.Annual General Meeting

d.Annual Gross Marketing

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

a.Earnings approach

b.Backward approach

c.Risk approach

d.Forward approach

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

a.None of these

b.Non diversifiable risk

c.Diversifiable risk

d.Adjusted risk

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

a.Short term investment decisions

b.Working capital decisions

c.Both a and b

d.None of these

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

a.Wage Collateral

b.Wage Capital

c.Withdraw Cash

d.Working capital

79. 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

80. 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.Both a and b

d.Discounting method

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

a.National Housing Bank

b.National Housing and Building Association

c.Native Hidden Brokerage

d.Non Hiring Business

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

a.20th Century

b.19th Centruy

c.21st Century

d.None of these

83. 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

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

a.Capital recovery factor

b.Discounted factor

c.None of these

d.Compounding factor

85. 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.Both a and b

c.None of these

d.Recurring Finance

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

a.None of these

b.Non-recurring finance functions

c.Recurring Finance

d.Both a and b

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

a.Financial Portfolio Investment

b.Financial Performance Index

c.Functional Profit Investment

d.Foreign Portfolio Investment

88. Financial decisions involve ____________

a.Investment, Financing and dividend decisions

b.investment dividend decisions

c.investment sales decisions

d.Financing cash decisions

89. The yield curve shows the relationship between:

a.Terms to maturaluty and price

b.None of these

c.Yield to maturity and price

d.Yield to maturity and terms to maturity

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

a.Investment Decision

b.Any of these

c.Finance decisions

d.Dividend decisions

91. 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

92. 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

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

a.Arrangement of financial resources

b.Arrange of utiization of funds

c.Effective management of capital

d.Acquiring capital assets of the organization

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

a.Operating lease

b.Leveraged lease

c.Sales and leaseback

d.Direct leasing arrangement

95. 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

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

a.Annual Foreign Stock

b.Available For Stock

c.Annual Financial Stock

d.Available For Sale

97. The main components of capital budgeting are:

a.Capital expenditure

b.Capital expenditure and Budgeting

c.Budgeting

d.none of these

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

a.Limited Libility corporation

b.Leverage Level Committee

c.Lender of Last Commodity

d.Limited Liablity Company

99. 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

c.Timing and Risk

d.Risk

100. 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

Finance MCQ Quiz for Various Competitive Exams

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

1 Comment

Submit a Comment Cancel reply

General

CBSE School Lessons

Popular Pages