finance MCQs – Page 23

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 Review each marked answer and report any item that may be outdated or unclear.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
441. The cash flows occurring with more than one change in sign of cash flow are classified as __________?
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A. non-normal costs

B. normal costs

C. non-normal cash flow

D. normal cash flow

442. The number of years forecasted to recover an original investment is classified as ___________?
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A. investment period

B. original period

C. forecasted period

D. payback period
443. The high price to earnings ratio shows companies ____________?
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A. high growth prospect

B. high marginal rate

C. high risk prospect

D. low dividends paid

444. In independent projects evaluation, the results of internal rate of return and net present value lead to __________?
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A. same decisions

B. different decisions

C. cost decision

D. cash flow decision

445. Condition in which companys imports are more than its exports is classified as____________?
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A. Foreign trade deficits

B. Trade surplus

C. Foreign trade

D. Foreign trade surplus

446. Process of selling company stock at large to general public and get lending from banks is classified as an_________________?
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A. Internal public offering

B. External public offering

C. Unprofessional offering

D. Initial public offering
447. Cost of money is affected by factors which includes______________?
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A. Inflation

B. All of above

C. Risk

D. Production opportunities

448. The set of projects or set of investments to maximize the firm value is classified as __________?
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A. greater capital budget

B. maximum capital budget

C. minimum capital budget

D. optimal capital budget
449. Markets which bring closer institutions needing funds and with surplus funds are classified as______________?
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A. Financial markets

B. Retirement planners

C. Corporate institutions

D. Hedge firms

450. All assets are perfectly divisible and liquid in___________?
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A. Cost free pricing model

B. Stock pricing model

C. Capital asset pricing model

D. Tax free pricing model

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
460. In estimating value of cash flows, the compounded future value is classified as its _________?
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A. relative value

B. terminal value

C. quit value

D. existed value