finance MCQs – Page 20

Practise multiple-choice questions from finance for competitive examinations and subject revision. Review each marked answer and report any item that may be outdated or unclear.

finance Mcqs

381. The cash outflows are the costs of project and are represented by _________?
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A. relative number

B. positive numbers

C. hurdle number

D. negative numbers

382. Markets for products such as wheat, rice, cotton, real estate and autos dealing is classified as___________?
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A. Competitive markets

B. Physical asset markets

C. Easy markets

D. Intangible assets

383. Corporations such as Citigroup, American Express and Fidelity are classified as__________________?
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A. Common service corporations

B. Commercial service corporations

C. Financial services corporations

D. Preferred service corporations

384. According to Black Scholes model, stocks with call option pays the__________?
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A. Past price

B. No dividends

C. Current price

D. Dividends

385. According to capital asset pricing model assumptions, quantities of all assets are______________?
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A. Given and variable

B. Given and fixed

C. Not given and fixed

D. Not given and variable

386. The situation in which the firm limits the expenditures on capital is classified as __________?
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A. marginal rationing

B. optimal rationing

C. transaction rationing

D. capital rationing

387. Federal Reserve policy and federal surplus or deficit of budget affect the____________?
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A. Cost of production

B. Cost of money

C. Inflation risk

D. Opportunity cost

388. Financial security issued by banks operating outside U.S is classified as___________________?
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A. Dollar bonds

B. Euro bonds

C. Eurodollar market deposits

D. Euro deposits

389. The projects which are mutually exclusive but different on scale of production or time of completion than the _________?
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A. internal return method

B. external return method

C. net present value of method

D. net future value method

390. Partners who are only liable for their own part of investment are considered as___________________?
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A. Venture partners

B. Corporate partners

C. Limited partners

D. General partners

391. In capital budgeting, number of non-normal cash flows have internal rate of returns are____________?
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A. Accepted

B. Non-accepted

C. Multiple

D. One

392. The life that maximizes net present value of an asset is classified as _________?
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A. minimum life

B. present value life

C. transaction life

D. economic life

393. Long-term equity anticipation security is usually classified as__________?
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A. Short money options

B. Yearly call

C. Short-term options

D. Long-term options

394. A formula such as net income available to common stockholders divided by common equity is used to calculate __________?
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A. return on investment

B. return on interest

C. return on common equity

D. return on earnings power

395. An investor who buys shares and writes a call option on stock is classified as__________?
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A. Hedger

B. Volatile hedge

C. Call investor

D. Put investor

396. Proceeds of company shares of sold stock is recorded in___________?
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A. Common stock account

B. Preceded stock account

C. Due stock account

D. Preferred stock account

397. Bond which is offered below its face value is classified as______________?
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A. Discounted bond

B. Original issue discount bond

C. Coupon issued bond

D. Present value bond

398. Bonds which are riskier than corporate bonds and are issued by major corporations are classified as___________?
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A. Common stocks

B. Preferred stocks

C. Corporate stocks

D. Leases

399. A type of project whose cash flows would not depend on each other is classified as ____________?
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A. net value projects

B. dependent projects

C. project net gain

D. independent projects

400. If market value is greater than book value, then investors for future stock are considered as___________________?
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A. Inexperienced

B. Experienced

C. Pessimistic

D. Optimistic

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