Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
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
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
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
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
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
Reinvestment risk of bonds is usually higher on______?
A: Income bonds
B: Callable bonds
C: Premium bonds
D: Default free bonds
Callable bonds