finance Mcqs
352. Type of financial securities that mature in less than a year are classified as___________?
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A. Money market securities

B. Capital market securities

C. Saving intermediaries

D. Discounted intermediaries

354. Cash flows that should be considered for decision in hand are classified as____________?
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A. Relevant cash flows

B. Irrelevant cash flows

C. Marginal cash flows

D. Transaction cash flows

355. Transfer through institutions such as mutual funds or banks are classified as________________?
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A. Non-financial intermediary

B. Financial intermediary

C. Savers intermediary

D. Discounted intermediary

359. Dow Jones is stock exchange market of__________?
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A. New York

B. None of these

C. Tokyo

D. London

361. Redemption option which protects investors against rise in interest rate is considered as________?
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A. Redeemable at finding

B. Redeemable at refund

C. Redeemable at deferred

D. Redeemable at par
362. Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate______________?
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A. Cash flow per share

B. Cash flow of financing activities

C. Cash flow of investment

D. Cash flow of operations

363. An increase in marginal cost of capital and the capital rationing are two arising complications of __________?
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A. greater capital budget

B. minimum capital budget

C. optimal capital budget

D. maximum capital budget

364. The first step in calculation of net present value is to find out ________?
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A. future value of equity

B. present value of equity

C. present value cash flow

D. future value of cash flow

367. Movement of price or rise or fall of prices of options is classified as_________?
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A. Binomial lattice

B. Pricing movement

C. Price change

D. Option lattice

368. In capital asset pricing model, assumptions must be followed including________?
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A. No transaction costs

B. No taxes

C. Fixed quantities of assets

D. All of above
369. Type of risk in which beta is equal to one is classified as____________?
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A. Multiple risk stock

B. Varied risk stock

C. Total risk stock

D. Average risk stock
370. The sum of discounted cash flows is best defined as ___________?
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A. defined future value

B. technical equity

C. project net present value

D. equity net present value

371. Cost of capital is equal to required return rate on equity in case if investors are only__________?
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A. Valuation manager

B. Common stockholders

C. Equity dealer

D. Asset seller

372. Professionals such as doctors, accountants and lawyers often make corporations are classified as____________?
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A. General professionals

B. Professional corporation

C. Professional association

D. Both B and C
374. Type of financial securities that matures in less than a year are classified as_______________?
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A. Discounted intermediaries

B. Money market securities

C. Capital market securities

D. Saving intermediaries

375. An internal rate of return in capital budgeting can be modified to make it the representative of __________?
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A. relative inflow

B. relative cost

C. relative outflow

D. relative profitability

376. Land, buildings, and factory fixed equipment are classified as____________?
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A. Financial liability

B. Financial asset

C. Tangible asset

D. Non-tangible assets

377. In internal rate of returns, the discount rate which forces the net present values to become zero is classified as ___________?
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A. negative rate of return

B. positive rate of return

C. external rate of return

D. internal rate of return
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

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

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

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