Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
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
Sum of discounted cash flows is best defined as____________?
A: Technical equity
B: Defined future value
C: Project net present value
D: Equity net present value
Project net present value
If net present value is positive, then profitability index will be__________?
A: Greater than two
B: Equal to
C: Less than one
D: Greater than one
Greater than one
Cash flows occurring with more than one change in sign of cash flow are classified as________?
A: Non-normal cash flow
B: Normal cash flow
C: Normal costs
D: Non-normal costs
Non-normal costs
Situation in which firm limits expenditures on capital is classified as________?
A: Optimal rationing
B: Capital rationing
C: Marginal rationing
D: Transaction rationing
Capital rationing
An internal rate of return in capital budgeting can be modified to make it representative of_________?
A: Relative outflow
B: Relative inflow
C: Relative cost
D: Relative profitability
Relative profitability
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