Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
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
Profitability index (PI) rule is to take an investment, if the index exceeds___________?
A: -1
C: 1
D: 2
1
Which of the following is the cheapest source of financing available to a firm?
A: Bank loan
B: Commercial papers
C: Trade credit
D: None of the given options.
Trade credit
_______________refers to the extent to which fixed-income securities (debt and preferred stock) are used in a firms capital structure?
A: Financial risk
B: Portfolio risk
C: Operating risk
D: Market risk
Financial risk
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
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