Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
Bonds issued by corporations and exposed to default risk are classified as_________?
A: Corporation bonds
B: Default bonds
C: Risk bonds
D: Zero risk bonds
Corporation bonds
Falling interest rate leads change to bondholder income which is__________?
A: Reduction in income
B: Increment in income
C: Matured income
D: Frequent income
Reduction in income
Bonds that have high liquidity premium are usually have_________?
A: Inflated trading
B: Default free trading
C: Less frequently traded
D: Frequently traded
Less frequently traded
Treasury bonds are exposed to additional risks that are included________?
A: Reinvestment risk
B: Interest rate risk
C: Investment risk
D: Both A and B
Both A and B
Payment divided by par value is classified as______________?
A: Divisible payment
B: Coupon payment
C: Par payment
D: Per period payment
Coupon payment
An uncovered cost at start of year is $200, full cash flow during recovery year is $400 and prior years to full recovery is 3 then payback would be__________?
A: 5 years
B: 3.5 years
C: 4 years
D: 4.5 years
3.5 years
Present value of future cash flows is divided by an initial cost of project to calculate_______?
A: Negative index
B: Exchange index
C: Project index
D: Profitability index
Profitability index
First step in calculation of net present value is to find out_________?
A: Present value of equity
B: Future value of equity
C: Present value cash flow
D: Future value of cash flow
Present value cash flow
Life that maximizes net present value of an asset is classified as__________?
A: Minimum life
B: Present value life
C: Economic life
D: Transaction life
Economic life
In capital budgeting, positive net present value results in_________________?
A: Negative economic value added
B: Positive economic value added
C: Zero economic value added
D: Percent economic value added
Positive economic value added