Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
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
_________ 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
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