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. Financial leverage is also known as

a.Interest on debt

b.Trading on equity

c.Trading on debt

d.Interest on equity

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

a.Any of these

b.Welfare maximization

c.Wealth Maximization

d.Profit Maximization

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

a.Earnings approach

b.Risk approach

c.Backward approach

d.Forward approach

4. 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

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

a.Market with finance

b.Financial Month

c.Mutual Fund

d.Maturity for

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

a.Middle Market

b.Management Key Trading

c.Money Market

d.Mutual Market Trading

7. Financial controller is responsible

a.Cash Management

b.None of these

c.Credit Management

d.Securities Management

8. Financial decisions involve ____________

a.Investment, Financing and dividend decisions

b.investment dividend decisions

c.investment sales decisions

d.Financing cash decisions

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

a.Defensive shares

b.Income shares

c.Growth shares

d.Cyclical shares

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

a.Fictitious asset

b.Financial Asset

c.Tangible Asset

d.Real Asset

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

a.Highly negative

b.Highly positive

c.Non correlation

d.Negative

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

a.Available For Stock

b.Annual Financial Stock

c.Annual Foreign Stock

d.Available For Sale

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

a.Shadow prices

b.Augmented price

c.Market Price

d.Discounted Prices

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

a.Financial Committee for Certified Business

b.Foreign Currency Convertible Bond

c.Food and Finance Corporation Board

d.Fast Credits on Conservative Basis

15. 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

16. 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.Technical analysis

d.Time series analysis

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

a.Insurance Development Board

b.Investment in Direct Bonds

c.India Development Bonds

d.International Deposit on Bonds

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

a.Relative valuation modesl

b.None of these

c.Dividend valuation models

d.Both a and b

19. 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

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

a.Financial Portfolio Investment

b.Functional Profit Investment

c.Financial Performance Index

d.Foreign Portfolio Investment

21. The financial institute IFCI established in

a.1945

b.1948

c.1960

d.1954

22. 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

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

a.Dividend

b.Total return

c.Premium

d.Total risk

24. 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

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

a.None of these

b.Compounding

c.Discounting

d.Both a and b

26. 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.Working Capital decisions

c.Financial Decisions

d.None of these

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

a.Chief Operating Officer

b.Credit on Option

c.Credit Operating Officer

d.Certified Operating Officer

28. 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

29. 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

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

a.Fresh on Funding

b.Focus on Funding

c.Funding on Forex

d.Flow Of Funds

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

a.Leverage Level Committee

b.Limited Libility corporation

c.Limited Liablity Company

d.Lender of Last Commodity

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

a.Business Risk

b.Financial Risk

c.Liquidity Risk

d.Interest Risk

33. 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 free rate of return

b.Required rate of return

c.Inflation premium

d.Risk premium

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

a.Both of these

b.Financial Structure

c.None of these

d.Capital Structure

35. The balance sheet valuation is a:

a.None of these

b.Futuristic approach

c.Nominal approach

d.Historical approach

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

a.Control Function

b.None of these

c.Management Funtion

d.Finance Function

37. Current yield is equal to What?

a.Running Yield

b.Any of these

c.Market yield

d.Income yield

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

a.Collective exhausting

b.Either collective exhausting or mutually inclusive

c.Mutually inclusive

d.None of these

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

a.Pittables debentures

b.Plain Vanilla bonds

c.Zero coupon bonds

d.Commodity linked bonds

40. Business finance deals with which of the following?

a.Both a and b

b.Procuring funds from different sources on fair terms

c.Utilize funds efficiently

d.None of these

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

a.Finance decisions

b.Any of these

c.Dividend decisions

d.Investment Decision

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

a.Beginning price of security

b.Ending price of security

c.Total beginning price and ending price of security

d.Difference between beginning price and ending price of security

43. 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

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

a.Commerce Trade Officer

b.Central Trading Operation

c.Capital take Over

d.Chief Technology Officer

45. Financial leverage helps one to estimate ____________

a.Business and Financial risk

b.The business risk

c.The financial risk

d.Prouction risk

46. 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

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

a.Control

b.Risk

c.Cost of Capital

d.All of these

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

a.Adjusted risk

b.Non diversifiable risk

c.None of these

d.Diversifiable risk

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

a.All of these

b.Procurement of essential funds

c.Credit management

d.Cash management

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

a.Leveraged lease

b.Direct leasing arrangement

c.Operating lease

d.Sales and leaseback

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

a.Automatic Teller Machine

b.Authorized Teller Machine

c.Automated Teller Machine

d.Auto Teller Machine

52. The main components of capital budgeting are:

a.none of these

b.Budgeting

c.Capital expenditure and Budgeting

d.Capital expenditure

53. 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

54. 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

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

a.19th Centruy

b.None of these

c.21st Century

d.20th Century

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

a.Revenue expenditure

b.Rental Expenditure

c.Capital expenditure

d.None of these

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

a.Liquidity Risk

b.Call Risk

c.Financial risk

d.Interest Risk

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

a.None of these

b.Working capital decisions

c.Short term investment decisions

d.Both a and b

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

a.Ambiguity

b.Ignore risk factor

c.All of these

d.Ignore time value of money

60. Funds are financial resources in the form of:

a.Cash Equivalents

b.All of these

c.Business funds

d.Corporate Capital

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

a.Wage Collateral

b.Wage Capital

c.Working capital

d.Withdraw Cash

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

a.Discounting

b.Compounding

c.Annuity

d.Reovery Factor

63. The yield curve shows the relationship between:

a.Terms to maturaluty and price

b.Yield to maturity and terms to maturity

c.Yield to maturity and price

d.None of these

64. 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

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

a.Private Equity

b.Premium Exchange

c.Profitable enquiry

d.Price-to-earning ration

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

a.Downwards

b.Any Pattern

c.Upwards

d.Humped

67. 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

68. 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.25%

d.15%

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

a.Both a and b

b.Recurring Finance

c.Non-recurring finance functions

d.None of these

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

a.Security market line

b.Capital market line

c.Asset market line

d.None of these

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

a.Year-to-date

b.Yield to Debit

c.Yield of Divergence

d.Year to Delivery

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

a.Compounding factor

b.Discounted factor

c.None of these

d.Capital recovery factor

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

a.Annual Trade Marketing

b.Asynchronous Transfer Mode

c.Asymmetric Transfer Mode

d.Account Transaction Mode

74. 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.10%

c.2.50%

d.15%

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

a.Perfectly negative

b.Positive

c.Negative

d.Zero

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

a.Earnings per share

b.Earning Preferred Stock

c.Exchange per Share

d.Equity Private Selling

77. Financial leverage measures ____________

a.1% Variation in level of production

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

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

d.No change with EBIT and EPS

78. 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

79. 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.Discounting

c.None of these

d.Annuity

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

a.None of these

b.Welfare maximization objective

c.Wealth maximization objective

d.Profit maximization objective

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

a.Medium Term and Long Term

b.Medium Term

c.Long Term

d.Short Term

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

a.Quarter-to-Date

b.Quality Trade Division

c.Quarter-to-Delivery

d.Quantitative Taxation Dividend

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

a.Chief Security Officer

b.Current Security Officer

c.Cabinet Security Officer

d.Consolidated Statistics Order

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

a.None of these

b.Total return

c.Current return

d.Capital return

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

a.Both a and b

b.Budgeting

c.Discounting method

d.Compounding method

86. 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

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

a.Annual Gross Marketing

b.Annual Gain Margin

c.Annual General Meeting

d.Annual General Marketing

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

a.Effective management of capital

b.Acquiring capital assets of the organization

c.Arrange of utiization of funds

d.Arrangement of financial resources

89. 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

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

a.Profit and Loss

b.Planning and Leaving

c.Premium and Liability

d.Promoting and Liquidity

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

a.Negative

b.Greater than 0

c.Less than 0

d.Equal to 0

92. 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

93. Not measurable time is?

a.Uncertainty

b.Risk

c.All of these

d.Certainty

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

a.Expected dividends

b.Earnings

c.All of these

d.Cash flows

95. Financial Management is mainly concerned with ____________

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

b.Arrangement of funds

c.Profit maximization

d.Efficient Management of every business

96. 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

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

a.National Stock Exchange

b.Net Asset Value

c.New York Stock Exchnage

d.Net uield Security Exchnage

98. 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.Call Risk

c.Financial Risk

d.Default Risk

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.Risk

d.Timing and Risk

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

a.Balance Sheet Equity

b.Bombay Stock Exchange

c.Balance Stock Equity

d.Base Stock Exchange

Finance MCQ Quiz for Various Competitive Exams

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

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