Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
Other factors held constant, greater project liquidity is because of___________?
A: Less project returns
B: Greater project return
C: Shorter payback period
D: Greater payback period
Shorter payback period
Project whose cash flows are sufficient to repay capital invested for rate of return then net present value will be_________?
A: Negative
B: Zero
C: Positive
D: Independent
Zero
Process in which managers of company identify projects to add value is classified as__________?
A: Capital budgeting
B: Cost budgeting
C: Book value budgeting
D: Equity budgeting
Capital budgeting
Number of years forecasted to recover an original investment is classified as________?
A: Payback period
B: Forecasted period
C: Original period
D: Investment period
Payback period
In capital budgeting, a negative net present value result in______________?
A: Zero economic value added
B: Percent economic value added
C: Negative economic value added
D: Positive economic value added
Negative economic value added
Modified rate of return and modified internal rate of return with exceed cost of capital if net present value is____________?
A: Positive
B: Negative
C: Zero
D: One
Positive
Type of bonds that pays no coupon payment but provides little appreciation are classified as______________?
A: Depreciated bond
B: Interest bond
C: Zero coupon bond
D: Appreciation bond
Zero coupon bond
Reinvestment risk of bonds is higher on__________?
A: Short maturity bonds
B: High maturity bonds
C: High premium bonds
D: High inflated bonds
Short maturity bonds
In large expansion programs, increased riskiness and flotation cost associated with project can cause_______________?
A: Rise in marginal cost of capital
B: Fall in marginal cost of capital
C: Rise in transaction cost of capital
D: Rise in transaction cost of capital
Rise in marginal cost of capital
Cash outflows are costs of project and are represented by___________?
A: Negative numbers
B: Positive numbers
C: Hurdle number
D: Relative number
Negative numbers