Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
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
Bonds issued by small companies tend to have_____________?
A: High liquidity premium
B: High inflation premium
C: High default premium
D: High yield premium
High liquidity premium
Value generally promises to pay at maturity date and a firm borrows is considered as bonds__________?
A: Bond value
B: Per value
C: State value
D: Par value
Par value
Bonds issued by government and backed by Pak government are classified as_________?
A: Issued security
B: Treasury bonds
C: U.S bonds
D: Return security
Treasury bonds
An increasing in interest rate leads to decline in value of__________?
A: Junk bonds
B: Outstanding bonds
C: Standing bonds
D: Premium bonds
Outstanding bonds
Coupon rate of bond is also called____________?
A: Nominal rate
B: Premium rate
C: Quoted rate
D: Both a and c
Both a and c
Type of bonds that are issued by foreign governments or foreign corporations are classified as__________?
A: Zero risk bonds
B: Zero bonds
C: Foreign bonds
D: Government bonds
Foreign bonds