finance Mcqs
451. Market where market makers keep record of stock of financial instruments is classified as_________________?
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A. Stock market

B. Dealer market

C. Outcry auction system

D. Face to face communication

452. Stock issued by company have lower rate of return because of___________?
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A. High market to book ratio

B. High book to market ratio

C. Low book to market ratio

D. Low market to book ratio

453. Money lends to corporations by banks is classified as___________?
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A. Eurodollar market deposits

B. Consumer credit loans

C. Consumer credit loans

D. Commercial loans
454. External factors such as expiration of basic patents and industry competition effect____________?
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A. Expiry premium

B. Patents premium

C. Companys beta

D. Competition premium

455. In cash flow analysis, the two projects are compared by using common life, is classified as _________?
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A. transaction approach

B. replacement chain approach

C. common life approach

D. Both B and C
456. In time value of money, periodic rate is_________?
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A. Divided on timeline

B. Not shown on timeline

C. Multiplied on timeline

D. Shown on timeline
457. Rate of return that an investment provides its investor is classified as__________?
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A. Investment return rate

B. Intrinsic rate of return

C. Internal rate of return

D. International rate of return

458. Tendency of measuring correlation of two variables is classified as_________?
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A. Correlation coefficient

B. Variable coefficient

C. Double coefficient

D. Tendency coefficient

459. The relationship between Economic Value Added (EVA) and the Net Present Value (NPV) is considered as _________?
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A. inverse relationship

B. valued relationship

C. economic relationship

D. direct relationship
462. The price per share divided by earnings per share is the formula for calculating ___________?
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A. earnings price ratio

B. pricing ratio

C. price earnings ratio

D. earnings ratio

463. If two independent projects having hurdle rate then both projects should ___________?
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A. be accepted

B. not be accepted

C. have capital acceptance

D. have return rate acceptance

465. Non cash revenues and non cash charges if it subtracted from net income is equal to___________?
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A. Financing cash flow

B. Retained cash flow

C. Free cash flow

D. Net cash flow
466. The price earnings ratio and price by cash flow ratio are classified as __________?
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A. equity ratios

B. marginal ratios

C. market value ratios

D. return ratios

467. A technique that is used in comparative analysis of financial statement is __________?
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A. returning analysis

B. graphical analysis

C. common size analysis

D. preference analysis

468. Intangible assets such as copyrights, trademarks and patents are applicable for____________?
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A. Perishable assets

B. Stock amortization

C. Depreciation

D. Amortization
469. In capital budgeting, the positive net present value results in _________?
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A. zero economic value added

B. negative economic value added

C. positive economic value added

D. percent economic value added

470. Method of inventory recording gives lower cost of goods sold in income statement is classified as______________?
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A. Last in first out

B. First out receivable

C. First in first out

D. Last out receivable

471. Stockholders that do not get benefits even if companys earnings grow are classified as_____________?
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A. Common stockholders

B. Hybrid stockholders

C. Debt holders

D. Preferred stockholders
472. Beta coefficient is used to measure market risk which is an index of__________?
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A. Market risk volatility

B. Coefficient risk volatility

C. Stock market volatility

D. Portfolio market portfolio

473. Stocks in market portfolio are graphically represented with_____________?
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A. Straight line

B. Dashed line

C. Risk line

D. Market line

477. In calculation of net cash flow, deferred tax payments are classified as______________?
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A. Current liabilities

B. Non-cash revenues

C. Income expense

D. Non-cash charges
481. An annuity with an extended life is classified as_____________?
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A. Due perpetuity

B. Extended life

C. Perpetuity

D. Deferred perpetuity

482. An increase in value of option leads to low present value of exercise cost only if it has____________?
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A. High volatility

B. Low volatility

C. Interest rates are high

D. Interest rates are low

483. Markets which deals with high liquid and short-term debt securities are classified as_____________?
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A. Capital markets

B. Money markets

C. Short-term markets

D. Liquid markets

484. Greater value of option, larger span of time value is usually results in__________?
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A. Longer put option

B. Longer call option

C. Shorter put option

D. Shorter call option

486. In calculation of time, value of money, N represents___________?
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A. Number of premium received

B. Number of payment periods

C. Number of investment

D. Number of installments

487. The techniques which are used to identify financial statements trends include __________?
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A. common size analysis

B. percent change analysis

C. returning ratios analysis

D. Both A and B
489. In an individual stock, relevant risk is classified as___________?
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A. Stand-alone coefficient

B. Relevant coefficient

C. Beta coefficient

D. Alpha coefficient

490. A modified internal rate of return is considered as present value of costs and is equal to ________?
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A. p.v of terminal value

B. fv of hurdle rate

C. fv of terminal value

D. p.v of hurdle rate

491. A company who issues bonds or stocks in result raised funds which finally____________?
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A. Increases liabilities

B. Increases equity

C. Increases cash

D. Decreases cash

492. If current price increases from lower to higher then an____________?
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A. Option value will decrease

B. Option value equal to zero

C. Option value equal to one

D. Option value will increase
493. Standard deviation is divided by expected rate of return is used to calculate_________?
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A. Coefficient of standard

B. Coefficient of return

C. Coefficient of deviation

D. Coefficient of variation
494. Funds which are used as interest-bearing checking accounts are classified as____________?
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A. Capital market funds

B. Insurance money funds

C. Money market funds

D. Money mutual funds

496. Markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as_____________?
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A. Physical asset markets

B. Financial asset markets

C. Easy markets

D. Financial instruments

498. A tighter probability distribution shows the___________?
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A. Higher risk

B. Peaked risk

C. Expected risk

D. Lower risk
499. Mutual fund allows investors to sale out their share during any normal trading hours is classified as____________?
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A. Capital trade fund

B. Management expense

C. Exchange traded fund

D. Money trade fund