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. Business finance deals with which of the following?

a.Both a and b

b.Utilize funds efficiently

c.None of these

d.Procuring funds from different sources on fair terms

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

a.Ignore risk factor

b.All of these

c.Ambiguity

d.Ignore time value of money

3. 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

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

a.Annuity

b.Discounting

c.Compounding

d.Reovery Factor

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

a.Middle Market

b.Management Key Trading

c.Mutual Market Trading

d.Money Market

6. 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%

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

a.None of these

b.Discounting

c.Both a and b

d.Compounding

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

a.Available For Sale

b.Annual Financial Stock

c.Annual Foreign Stock

d.Available For Stock

9. 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

10. 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.Gordon Model

d.H model ofequity valuation

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

a.Financial Portfolio Investment

b.Foreign Portfolio Investment

c.Functional Profit Investment

d.Financial Performance Index

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

a.Planning and Leaving

b.Premium and Liability

c.Promoting and Liquidity

d.Profit and Loss

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

a.Capital return

b.Total return

c.None of these

d.Current return

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

a.Commercial Account Growth

b.Consolidated Audit General

c.Controller and Auditor General of India

d.Commercial Auditor General

15. 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.All of these

b.Public Finance

c.Business Finance

d.Private Finance

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

a.Native Hidden Brokerage

b.Non Hiring Business

c.National Housing and Building Association

d.National Housing Bank

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

a.Less than 0

b.Greater than 0

c.Equal to 0

d.Negative

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

a.Compounding factor

b.Capital recovery factor

c.Discounted factor

d.None of these

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

a.Profit maximization objective

b.Wealth maximization objective

c.Welfare maximization objective

d.None of these

20. 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

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

a.21st Century

b.None of these

c.19th Centruy

d.20th Century

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

a.Asset market line

b.Security market line

c.Capital market line

d.None of these

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

a.Secondary market

b.Primary market

c.Mney market

d.None of these

24. Funds are financial resources in the form of:

a.Corporate Capital

b.Business funds

c.All of these

d.Cash Equivalents

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

a.Auto Teller Machine

b.Automatic Teller Machine

c.Authorized Teller Machine

d.Automated Teller Machine

26. 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.Cyclical shares

d.Growth shares

27. 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.Recurring Finance

d.Both a and b

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

a.Backward approach

b.Forward approach

c.Risk approach

d.Earnings approach

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

a.None of these

b.Financial Structure

c.Capital Structure

d.Both of these

30. 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.None of these

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

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

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

a.Any of these

b.Finance decisions

c.Investment Decision

d.Dividend decisions

32. Financial leverage is also known as

a.Trading on debt

b.Interest on equity

c.Interest on debt

d.Trading on equity

33. Industrial Development Bank of India is

a.Wholly owned Government of India undertaking

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

c.Wholly-owned subsidiary of Reserve Bank of India

d.Pubic Limited Company

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

a.Withdraw Cash

b.Wage Capital

c.Working capital

d.Wage Collateral

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

a.Growth shares

b.Defensive shares

c.Cyclical shares

d.Income shares

36. The yield curve shows the relationship between:

a.Yield to maturity and price

b.None of these

c.Terms to maturaluty and price

d.Yield to maturity and terms to maturity

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

a.Upwards

b.Any Pattern

c.Humped

d.Downwards

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

a.Adjusted risk

b.Diversifiable risk

c.Non diversifiable risk

d.None of these

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

a.Asymmetric Transfer Mode

b.Annual Trade Marketing

c.Account Transaction Mode

d.Asynchronous Transfer Mode

40. 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

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

a.Arrangement of financial resources

b.Effective management of capital

c.Arrange of utiization of funds

d.Acquiring capital assets of the organization

42. Financial leverage helps one to estimate ____________

a.The business risk

b.The financial risk

c.Prouction risk

d.Business and Financial risk

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

a.Profit Maximization

b.Wealth Maximization

c.Any of these

d.Welfare maximization

44. 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.Risk free rate of return

c.Required rate of return

d.Risk premium

45. 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.Compounding method

d.Discounting method

46. 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.10%

d.25%

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

a.All of these

b.Share Capital

c.Debt Capital

d.Trade Credit

48. Yield to maturity is what?

a.None of the above

b.Combination of current yield and annual apppreciation

c.Annual appreciation or depreciation

d.Current yield

49. 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

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

a.Net Asset Value

b.National Stock Exchange

c.Net uield Security Exchnage

d.New York Stock Exchnage

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

a.Long Term

b.Medium Term and Long Term

c.Medium Term

d.Short Term

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

a.Business Risk

b.Financial Risk

c.Interest Risk

d.Liquidity Risk

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

a.Fictitious asset

b.Financial Asset

c.Real Asset

d.Tangible Asset

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

a.Total risk

b.Total return

c.Dividend

d.Premium

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

a.Base Stock Exchange

b.Balance Sheet Equity

c.Bombay Stock Exchange

d.Balance Stock Equity

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

a.Exchange per Share

b.Equity Private Selling

c.Earning Preferred Stock

d.Earnings per share

57. The main components of capital budgeting are:

a.Capital expenditure

b.none of these

c.Budgeting

d.Capital expenditure and Budgeting

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

a.Leverage Level Committee

b.Limited Libility corporation

c.Limited Liablity Company

d.Lender of Last Commodity

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

a.Operating lease

b.Direct leasing arrangement

c.Leveraged lease

d.Sales and leaseback

60. 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

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

a.Quantitative Taxation Dividend

b.Quarter-to-Date

c.Quarter-to-Delivery

d.Quality Trade Division

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

a.Positive

b.Perfectly negative

c.Negative

d.Zero

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

a.None of these

b.Control Function

c.Management Funtion

d.Finance Function

64. 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.Financial Decisions

b.None of these

c.Capital bbudgeting decisions

d.Working Capital decisions

65. Financial decisions involve ____________

a.Investment, Financing and dividend decisions

b.Financing cash decisions

c.investment dividend decisions

d.investment sales decisions

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

a.Rental Expenditure

b.Revenue expenditure

c.None of these

d.Capital expenditure

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

a.Annual Gain Margin

b.Annual General Marketing

c.Annual General Meeting

d.Annual Gross Marketing

68. 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

69. 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

70. The balance sheet valuation is a:

a.Nominal approach

b.Historical approach

c.Futuristic approach

d.None of these

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

a.International Deposit on Bonds

b.Insurance Development Board

c.Investment in Direct Bonds

d.India Development Bonds

72. Current yield is equal to What?

a.Running Yield

b.Market yield

c.Income yield

d.Any of these

73. The financial institute IFCI established in

a.1945

b.1954

c.1960

d.1948

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

a.Market with finance

b.Financial Month

c.Maturity for

d.Mutual Fund

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

a.Commerce Trade Officer

b.Capital take Over

c.Central Trading Operation

d.Chief Technology Officer

76. 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

77. 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

78. Financial Management is mainly concerned with ____________

a.Arrangement of funds

b.Profit maximization

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

d.Efficient Management of every business

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

a.Non correlation

b.Highly positive

c.Negative

d.Highly negative

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

a.Interest Risk

b.Call Risk

c.Liquidity Risk

d.Financial risk

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

a.Mutually inclusive

b.Either collective exhausting or mutually inclusive

c.Collective exhausting

d.None of these

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

a.Both a and b

b.Short term investment decisions

c.None of these

d.Working capital decisions

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

a.Native Sensex Efficiency

b.National Export in Shares

c.National Stock Exchange

d.National Shares and Equities

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

a.None of these

b.systematic risk

c.Unsystematic risk

d.Non diversifiable risk

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. Financial controller is responsible

a.Credit Management

b.Securities Management

c.Cash Management

d.None of these

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

a.Focus on Funding

b.Fresh on Funding

c.Flow Of Funds

d.Funding on Forex

88. 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

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

a.Humped slope

b.Downward slope

c.Flat

d.Upwards slope

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

a.Difference between beginning price and ending price of security

b.Total beginning price and ending price of security

c.Ending price of security

d.Beginning price of security

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

a.Time series analysis

b.Technical analysis

c.None of these

d.Cross sectional analysis

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

a.Yield of Divergence

b.Year to Delivery

c.Yield to Debit

d.Year-to-date

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

a.Consolidated Statistics Order

b.Cabinet Security Officer

c.Chief Security Officer

d.Current Security Officer

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

a.None of these

b.Both a and b

c.Non-recurring finance functions

d.Recurring Finance

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

a.Certified Operating Officer

b.Credit on Option

c.Credit Operating Officer

d.Chief Operating Officer

96. 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.Risk

c.Timing and Risk

d.Timing

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

a.All of these

b.Expected dividends

c.Earnings

d.Cash flows

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

a.Private Equity

b.Premium Exchange

c.Profitable enquiry

d.Price-to-earning ration

99. The excess of the present value of benefits over the present value of costs of a course of Action is called as:

a.Payoff

b.Benefits

c.Wealth

d.All of these

100. Not measurable time is?

a.Risk

b.Certainty

c.All of these

d.Uncertainty

Finance MCQ Quiz for Various Competitive Exams

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

Submit a Comment Cancel reply

Latest Posts

General

Important Days

CBSE School Lessons

Popular Pages

Entrance Exams

Top Entrance Exams

Admission Information

Career and Jobs

Education India