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. What is the full form of "NYSE"?

a.National Stock Exchange

b.Net uield Security Exchnage

c.New York Stock Exchnage

d.Net Asset Value

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

a.Chief Operating Officer

b.Credit on Option

c.Credit Operating Officer

d.Certified Operating Officer

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

a.Free cash flow models

b.H model ofequity valuation

c.None of these

d.Gordon Model

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

a.Dividend decisions

b.Any of these

c.Finance decisions

d.Investment Decision

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

a.Private Equity

b.Profitable enquiry

c.Premium Exchange

d.Price-to-earning ration

6. Not measurable time is?

a.All of these

b.Certainty

c.Risk

d.Uncertainty

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

a.Acquiring capital assets of the organization

b.Effective management of capital

c.Arrangement of financial resources

d.Arrange of utiization of funds

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

a.Mutual Market Trading

b.Money Market

c.Management Key Trading

d.Middle Market

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

a.Both of these

b.Capital Structure

c.Financial Structure

d.None of these

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

a.Share Capital

b.All of these

c.Debt Capital

d.Trade Credit

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

a.Earnings per share

b.Earning Preferred Stock

c.Equity Private Selling

d.Exchange per Share

12. Financial Management is mainly concerned with ____________

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

b.Profit maximization

c.Efficient Management of every business

d.Arrangement of funds

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

a.None of these

b.Mutually inclusive

c.Collective exhausting

d.Either collective exhausting or mutually inclusive

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

a.Procurement of essential funds

b.Cash management

c.All of these

d.Credit management

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

a.20th Century

b.None of these

c.19th Centruy

d.21st Century

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

a.International Deposit on Bonds

b.India Development Bonds

c.Insurance Development Board

d.Investment in Direct Bonds

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

a.Foreign Portfolio Investment

b.Functional Profit Investment

c.Financial Portfolio Investment

d.Financial Performance Index

18. 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.20%

c.15%

d.25%

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

a.Difference between beginning price and ending price of security

b.Beginning price of security

c.Ending price of security

d.Total beginning price and ending price of security

20. The yield curve shows the relationship between:

a.Yield to maturity and terms to maturity

b.Yield to maturity and price

c.Terms to maturaluty and price

d.None of these

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

a.Earnings approach

b.Risk approach

c.Backward approach

d.Forward approach

22. 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.Financial Decisions

c.None of these

d.Capital bbudgeting decisions

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

a.Upwards

b.Downwards

c.Humped

d.Any Pattern

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

a.Compounding factor

b.Capital recovery factor

c.None of these

d.Discounted factor

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

a.Chief Security Officer

b.Current Security Officer

c.Cabinet Security Officer

d.Consolidated Statistics Order

26. 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

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

a.Central Committee Exchange Act

b.Central Commerce Economic Affairs

c.Cabinet Committee on Economic Affairs

d.Certified Commerce Exchange Act

28. Financial leverage helps one to estimate ____________

a.Business and Financial risk

b.The financial risk

c.Prouction risk

d.The business risk

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

a.Unsystematic risk

b.systematic risk

c.None of these

d.Non diversifiable risk

30. 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

31. The financial institute IFCI established in

a.1945

b.1954

c.1960

d.1948

32. 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.Both a and b

d.Relative valuation modesl

33. 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

34. Financial leverage is also known as

a.Interest on equity

b.Trading on debt

c.Trading on equity

d.Interest on debt

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

a.Working capital

b.Withdraw Cash

c.Wage Capital

d.Wage Collateral

36. 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 premium

c.Inflation premium

d.Risk free rate of return

37. Business finance deals with which of the following?

a.Procuring funds from different sources on fair terms

b.Both a and b

c.Utilize funds efficiently

d.None of these

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

a.Recurring Finance

b.Both a and b

c.Non-recurring finance functions

d.None of these

39. 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

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

a.Controller and Auditor General of India

b.Consolidated Audit General

c.Commercial Account Growth

d.Commercial Auditor General

41. The balance sheet valuation is a:

a.Historical approach

b.Futuristic approach

c.None of these

d.Nominal approach

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

a.Finance Function

b.Control Function

c.None of these

d.Management Funtion

43. 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.Shadow prices

c.Market Price

d.Augmented price

44. 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.None of these

c.Recurring Finance

d.Both a and b

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

a.Fictitious asset

b.Real Asset

c.Financial Asset

d.Tangible Asset

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

a.Annual Gain Margin

b.Annual General Marketing

c.Annual General Meeting

d.Annual Gross Marketing

47. Financial decisions involve ____________

a.Financing cash decisions

b.Investment, Financing and dividend decisions

c.investment dividend decisions

d.investment sales decisions

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

a.Autonomous Resource for International Movement Association

b.Active Resource for Investment and Management

c.Auxiliary Revenue for Investing on Market

d.Auto-Regressive Integrated Moving Average

49. 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

50. Current yield is equal to What?

a.Any of these

b.Market yield

c.Running Yield

d.Income yield

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

a.Cyclical shares

b.Growth shares

c.Defensive shares

d.Income shares

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

a.Earnings

b.Cash flows

c.Expected dividends

d.All of these

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

a.Greater than 0

b.Equal to 0

c.Less than 0

d.Negative

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

a.Focus on Funding

b.Funding on Forex

c.Flow Of Funds

d.Fresh on Funding

55. 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.2.50%

c.15%

d.5%

56. The method of converting the amount of future cash into an amount of cash and cash equivalents value in present is known as:

a.Compounding

b.Annuity

c.Discounting

d.None of these

57. 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

58. Financial leverage measures ____________

a.No change with EBIT and EPS

b.1% Variation in level of production

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

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

59. 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

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

a.Quality Trade Division

b.Quarter-to-Date

c.Quantitative Taxation Dividend

d.Quarter-to-Delivery

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

a.All of these

b.Ambiguity

c.Ignore risk factor

d.Ignore time value of money

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

a.National Stock Exchange

b.National Shares and Equities

c.Native Sensex Efficiency

d.National Export in Shares

63. 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.Call Risk

d.Financial Risk

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

a.Security market line

b.Capital market line

c.None of these

d.Asset market line

65. 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.All of these

c.Payoff

d.Wealth

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

a.Auto Teller Machine

b.Authorized Teller Machine

c.Automatic Teller Machine

d.Automated Teller Machine

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

a.Capital expenditure

b.Revenue expenditure

c.None of these

d.Rental Expenditure

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

a.Balance Sheet Equity

b.Base Stock Exchange

c.Bombay Stock Exchange

d.Balance Stock Equity

69. 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

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

a.Cross sectional analysis

b.None of these

c.Time series analysis

d.Technical analysis

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

a.All of these

b.Risk

c.Control

d.Cost of Capital

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

a.Discounting method

b.Compounding method

c.Budgeting

d.Both a and b

73. 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.Public Finance

d.Business Finance

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

a.Foreign Currency Convertible Bond

b.Financial Committee for Certified Business

c.Food and Finance Corporation Board

d.Fast Credits on Conservative Basis

75. Financial controller is responsible

a.Credit Management

b.None of these

c.Securities Management

d.Cash Management

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

a.Financial Risk

b.Liquidity Risk

c.Interest Risk

d.Business Risk

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

a.Profit Maximization

b.Any of these

c.Wealth Maximization

d.Welfare maximization

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

a.Discounting

b.None of these

c.Compounding

d.Both a and b

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

a.Asymmetric Transfer Mode

b.Account Transaction Mode

c.Annual Trade Marketing

d.Asynchronous Transfer Mode

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

a.Limited Liablity Company

b.Lender of Last Commodity

c.Leverage Level Committee

d.Limited Libility corporation

81. The main components of capital budgeting are:

a.Budgeting

b.none of these

c.Capital expenditure

d.Capital expenditure and Budgeting

82. Industrial Development Bank of India is

a.Wholly-owned subsidiary of Reserve Bank of India

b.Wholly owned Government of India undertaking

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

d.Pubic Limited Company

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

a.Call Risk

b.Interest Risk

c.Financial risk

d.Liquidity Risk

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

a.Pittables debentures

b.Zero coupon bonds

c.Plain Vanilla bonds

d.Commodity linked bonds

85. 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.Upwards slope

d.Downward slope

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

a.None of these

b.Adjusted risk

c.Diversifiable risk

d.Non diversifiable risk

87. Funds are financial resources in the form of:

a.All of these

b.Corporate Capital

c.Business funds

d.Cash Equivalents

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

a.Negative

b.Zero

c.Perfectly negative

d.Positive

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

a.Mutual Fund

b.Maturity for

c.Market with finance

d.Financial Month

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

a.None of these

b.Total return

c.Capital return

d.Current return

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

a.Year-to-date

b.Yield to Debit

c.Yield of Divergence

d.Year to Delivery

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

a.Leveraged lease

b.Sales and leaseback

c.Direct leasing arrangement

d.Operating lease

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

a.Commerce Trade Officer

b.Central Trading Operation

c.Chief Technology Officer

d.Capital take Over

94. 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 less than the nominal return

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

d.None of these

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

a.Secondary market

b.Mney market

c.Primary market

d.None of these

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

a.Non Hiring Business

b.National Housing Bank

c.National Housing and Building Association

d.Native Hidden Brokerage

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

a.None of these

b.Either a or b

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

d.To distribute it as dividend to the shareholders

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

a.Highly negative

b.Negative

c.Highly positive

d.Non correlation

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

a.Available For Sale

b.Annual Financial Stock

c.Annual Foreign Stock

d.Available For Stock

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

a.Premium and Liability

b.Planning and Leaving

c.Profit and Loss

d.Promoting and Liquidity

Finance MCQ Quiz for Various Competitive Exams

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

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