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 inflation rate includes in bonds interest rates is one which is inflation rate________?
A: At bond issuance
B: Expected in future
C: Expected at time of maturity
D: Expected at deferred call
Expected in future
An average inflation rate which is expected over life of security is classified as__________?
A: Inflation premium
B: Off season premium
C: Nominal premium
D: Required premium
Inflation premium
Type of bond which pays interest payment only when it earns is classified as__________?
A: Income bond
B: Interest bond
C: Payment bond
D: Earning bond
Income bond
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
In mutually exclusive projects, project which is selected for comparison with others must have____________?
A: Higher net present value
B: Lower net present value
C: Zero net present value
D: All of above
Higher net present value
Profitability index in capital budgeting is used for_________?
A: Negative projects
B: Relative projects
C: Evaluate projects
D: Earned projects
Evaluate projects
Relationship between Economic Value Added (EVA) and Net Present Value (NPV) is considered as____________?
A: Valued relationship
B: Economic relationship
C: Direct relationship
D: Inverse relationship
Direct relationship
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