Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
The use of Personal borrowing to alter the degree of financial leverage is called__________?
A: Homemade leverage
B: Financial leverage
C: Operating leverage
D: None of the given option
Homemade leverage
_________ refers to the most valuable alternative that is given up if a particular investment is undertaken?
A: Sunk cost
B: Opportunity cost
C: Financing cost
D: All of the given options
Opportunity cost
A model which makes an assumption about the future growth of dividends is known as:
A: Dividend Price Model
B: Dividend Growth Model
C: Dividend Policy Model
D: All of the given options
Dividend Growth Model
Which of the following is not a quality of IRR ?
A: Most widely used
B: Ideal to rank the mutually exclusive investments
C: Easily communicated and understood
D: Can be estimated even without knowing the discount rate
Ideal to rank the mutually exclusive investments
Which of the following is a series of constant cash flows that occur at the end of each period for some fixed number of periods?
A: Ordinary annuity
B: Annuity due
C: Perpetuity
D: None of the given options
Ordinary annuity
The conflict of interest between stockholders and management is known as:
A: Agency problem
B: Interest conflict
C: Management conflict
D: Agency cost
Agency problem
Which of the following ratios are intended to address the firms financial leverage?
A: Liquidity Ratios
B: Long-term Solvency Ratios
C: Asset Management Ratios
D: Profitability Ratios
Long-term Solvency Ratios
Which of the following statement is CORRECT regarding compound interest?
A: It is the most basic form of calculating interest.
B: It earns profit not only on principal but also on interest.
C: It is calculated by multiplying principal by rate multiplied by tim
D: It does not take into account the accumulated interest for calculation.
It earns profit not only on principal but also on interest.
When real rate is high, all the interest rates tend to be ___________?
A: Higher
B: Lower
C: Constant
D: None of these
Higher
Which of the following relationships holds TRUE if a bond sells at a discount?
A: Bond Price < Par Value and YTM > coupon rate
B: Bond Price > Par Value and YTM > coupon rate
C: Bond Price > Par Value and YTM < coupon rate
D: Bond Price < Par Value and YTM < coupon rate
Bond Price < Par Value and YTM > coupon rate