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 "EPS"?

a.Earnings per share

b.Earning Preferred Stock

c.Equity Private Selling

d.Exchange per Share

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

a.Reovery Factor

b.Annuity

c.Discounting

d.Compounding

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

a.Central Trading Operation

b.Commerce Trade Officer

c.Chief Technology Officer

d.Capital take Over

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

a.Credit on Option

b.Chief Operating Officer

c.Certified Operating Officer

d.Credit Operating Officer

5. Yield to maturity is what?

a.Combination of current yield and annual apppreciation

b.Current yield

c.Annual appreciation or depreciation

d.None of the above

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

a.Capital return

b.Total return

c.Current return

d.None of these

7. 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

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

a.National Stock Exchange

b.Native Sensex Efficiency

c.National Shares and Equities

d.National Export in Shares

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

a.Total return

b.Dividend

c.Total risk

d.Premium

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

a.Primary market

b.None of these

c.Secondary market

d.Mney market

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

a.Earnings approach

b.Backward approach

c.Risk approach

d.Forward approach

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

a.Both of these

b.None of these

c.Capital Structure

d.Financial Structure

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

a.National Housing Bank

b.Native Hidden Brokerage

c.Non Hiring Business

d.National Housing and Building Association

14. Financial controller is responsible

a.Cash Management

b.Securities Management

c.None of these

d.Credit Management

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

a.Downward slope

b.Upwards slope

c.Flat

d.Humped slope

16. 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

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

a.Diversifiable risk

b.Non diversifiable risk

c.Adjusted risk

d.None of these

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

a.India Development Bonds

b.Investment in Direct Bonds

c.Insurance Development Board

d.International Deposit on Bonds

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

a.Annual Foreign Stock

b.Available For Stock

c.Annual Financial Stock

d.Available For Sale

20. Financial decisions involve ____________

a.investment dividend decisions

b.Financing cash decisions

c.investment sales decisions

d.Investment, Financing and dividend decisions

21. Financial Management is mainly concerned with ____________

a.Efficient Management of every business

b.Arrangement of funds

c.Profit maximization

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

22. The yield curve shows the relationship between:

a.Yield to maturity and terms to maturity

b.Yield to maturity and price

c.None of these

d.Terms to maturaluty and price

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

a.Mutual Fund

b.Financial Month

c.Maturity for

d.Market with finance

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

a.None of these

b.Recurring Finance

c.Both a and b

d.Non-recurring finance functions

25. Funds are financial resources in the form of:

a.Cash Equivalents

b.All of these

c.Corporate Capital

d.Business funds

26. 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.5%

c.2.50%

d.15%

27. 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

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

a.Auto Teller Machine

b.Automatic Teller Machine

c.Automated Teller Machine

d.Authorized Teller Machine

29. 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.None of these

c.Discounting

d.Annuity

30. 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

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

a.Acquiring capital assets of the organization

b.Arrange of utiization of funds

c.Effective management of capital

d.Arrangement of financial resources

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

a.Annual Gain Margin

b.Annual Gross Marketing

c.Annual General Marketing

d.Annual General Meeting

33. 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 less than the nominal return

c.Real return on a security is more than the nominal return

d.None of these

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

a.Interest Risk

b.Business Risk

c.Liquidity Risk

d.Financial Risk

35. 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

36. 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.Discounted Prices

c.Shadow prices

d.Market Price

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

a.Risk

b.Cost of Capital

c.Control

d.All of these

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

a.To distribute it as dividend to the shareholders

b.Either a or b

c.None of these

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

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

a.Current Security Officer

b.Chief Security Officer

c.Cabinet Security Officer

d.Consolidated Statistics Order

40. Financial leverage measures ____________

a.1% Variation in level of production

b.No change with EBIT and EPS

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

41. 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

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

a.Compounding factor

b.None of these

c.Capital recovery factor

d.Discounted factor

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

a.Technical analysis

b.Time series analysis

c.None of these

d.Cross sectional analysis

44. Financial leverage is also known as

a.Interest on equity

b.Interest on debt

c.Trading on debt

d.Trading on equity

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

a.Yield to Debit

b.Year to Delivery

c.Yield of Divergence

d.Year-to-date

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

a.Premium and Liability

b.Profit and Loss

c.Promoting and Liquidity

d.Planning and Leaving

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

a.Budgeting

b.Compounding method

c.Discounting method

d.Both a and b

48. Current yield is equal to What?

a.Any of these

b.Market yield

c.Income yield

d.Running Yield

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

a.All of these

b.Cash management

c.Credit management

d.Procurement of essential funds

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

a.21st Century

b.19th Centruy

c.None of these

d.20th Century

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

a.Short term investment decisions

b.Both a and b

c.Working capital decisions

d.None of these

52. The main components of capital budgeting are:

a.Budgeting

b.Capital expenditure and Budgeting

c.Capital expenditure

d.none of these

53. 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.Management Funtion

d.Control Function

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

a.Foreign Portfolio Investment

b.Financial Performance Index

c.Functional Profit Investment

d.Financial Portfolio Investment

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

a.Timing

b.None of these

c.Risk

d.Timing and Risk

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

a.Earnings

b.All of these

c.Expected dividends

d.Cash flows

57. 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.None of these

d.Financial Decisions

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

a.Management Key Trading

b.Money Market

c.Mutual Market Trading

d.Middle Market

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

a.Gordon Model

b.None of these

c.H model ofequity valuation

d.Free cash flow models

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

a.Wealth Maximization

b.Any of these

c.Profit Maximization

d.Welfare maximization

61. Not measurable time is?

a.Uncertainty

b.All of these

c.Risk

d.Certainty

62. The balance sheet valuation is a:

a.Nominal approach

b.Futuristic approach

c.None of these

d.Historical approach

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

a.Non correlation

b.Negative

c.Highly positive

d.Highly negative

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

a.Annual Trade Marketing

b.Account Transaction Mode

c.Asynchronous Transfer Mode

d.Asymmetric Transfer Mode

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

a.Negative

b.Equal to 0

c.Less than 0

d.Greater than 0

66. 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

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

a.Dividend valuation models

b.None of these

c.Both a and b

d.Relative valuation modesl

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

a.Tangible Asset

b.Fictitious asset

c.Financial Asset

d.Real Asset

69. Financial leverage helps one to estimate ____________

a.Prouction risk

b.The business risk

c.Business and Financial risk

d.The financial risk

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

a.Working capital

b.Wage Capital

c.Wage Collateral

d.Withdraw Cash

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

a.Bombay Stock Exchange

b.Base Stock Exchange

c.Balance Stock Equity

d.Balance Sheet Equity

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

a.Profitable enquiry

b.Premium Exchange

c.Price-to-earning ration

d.Private Equity

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

a.Net Asset Value

b.Net uield Security Exchnage

c.New York Stock Exchnage

d.National Stock Exchange

74. 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.Wealth

d.All of these

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

a.Auxiliary Revenue for Investing on Market

b.Auto-Regressive Integrated Moving Average

c.Active Resource for Investment and Management

d.Autonomous Resource for International Movement Association

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

a.Debt Capital

b.Share Capital

c.All of these

d.Trade Credit

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

a.Capital expenditure

b.Rental Expenditure

c.None of these

d.Revenue expenditure

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

a.Finance decisions

b.Dividend decisions

c.Investment Decision

d.Any of these

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

a.Sales and leaseback

b.Operating lease

c.Direct leasing arrangement

d.Leveraged lease

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

a.Upwards

b.Any Pattern

c.Downwards

d.Humped

81. 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.Inflation premium

c.Required rate of return

d.Risk free rate of return

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

a.Fresh on Funding

b.Funding on Forex

c.Focus on Funding

d.Flow Of Funds

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.All of these

c.Public Finance

d.Business Finance

84. Industrial Development Bank of India is

a.Wholly-owned subsidiary of Reserve Bank of India

b.Wholly owned Government of India undertaking

c.Pubic Limited Company

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

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

a.Financial Risk

b.Liquidity Risk

c.Call Risk

d.Default Risk

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

a.Non diversifiable risk

b.Unsystematic risk

c.None of these

d.systematic risk

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

a.Commercial Auditor General

b.Commercial Account Growth

c.Consolidated Audit General

d.Controller and Auditor General of India

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

a.Plain Vanilla bonds

b.Pittables debentures

c.Commodity linked bonds

d.Zero coupon bonds

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

a.Quarter-to-Delivery

b.Quantitative Taxation Dividend

c.Quality Trade Division

d.Quarter-to-Date

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

a.Cyclical shares

b.Defensive shares

c.Growth shares

d.Income shares

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

a.Limited Liablity Company

b.Lender of Last Commodity

c.Leverage Level Committee

d.Limited Libility corporation

92. The financial institute IFCI established in

a.1954

b.1945

c.1948

d.1960

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

a.Positive

b.Negative

c.Zero

d.Perfectly negative

94. 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.15%

c.20%

d.25%

95. 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

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

a.None of these

b.Non-recurring finance functions

c.Both a and b

d.Recurring Finance

97. 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

98. 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

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

a.None of these

b.Profit maximization objective

c.Wealth maximization objective

d.Welfare maximization objective

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

a.None of these

b.Compounding

c.Both a and b

d.Discounting

Finance MCQ Quiz for Various Competitive Exams

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

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