Finance Mcqs – (Management Sciences) MCQs Latest For FPSC, PPSC, NTS, KPPSC, SPSC & Other Tests
“ Finance Mcqs “. Tab this page to check “Latest Finance MCQs” for the preparation of competitive mcqs, FPSC mcqs, PPSC mcqs, SPSC mcqs, KPPSC mcqs, AJKPSC mcqs, BPSC mcqs, NTS mcqs, PTS mcqs, OTS mcqs, Atomic Energy mcqs, Pak Army mcqs, Pak Navy mcqs, CTS mcqs, ETEA mcqs and others. The most occurred mcqs of Finance in past papers. Past papers of Finance mcqs. Past papers of Finance MCQs. Finance Mcqs are the necessary part of any competitive / job related exams. The Finance mcqs having specific numbers in any written test. It is therefore everyone have to learn / remember the related Finance mcqs. The Important series of Finance Mcqs are given below:
Positive minimum risk portfolio of any security shows that market security sold____________?
A. Equal to sum of stocks
B. Equal to original price
C. Less than original price
D. Greater than original price
Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as____________?
A. Stock risk
B. Market risk
C. Diversifiable risk
D. Portfolio risk
An analysis of decision making of investors and managers is classified as_________?
A. Premium finance
B. Behavioral finance
C. Riskier finance
D. Buying finance
An inflation free rate of return and inflation premium is two components of_________?
A. Quoted rate
B. Steeper rate
C. Unquoted rate
D. Portfolio rate
Two alternative expected returns are compared with help of__________?
A. Coefficient of variation
B. Coefficient of standard
C. Coefficient of deviation
D. Coefficient of return
Sum of market risk and diversifiable risk are classified as total risk which is equivalent to_______________?
A. Standard alpha’s
B. Sharpe’s alpha
C. Alpha’s variance
D. Variance
Standard deviation of tighter probability distribution is____________?
A. Short-termed
B. Long-termed
C. Riskier
D. Smaller
Type of risk in which beta is equal to one is classified as____________?
A. Varied risk stock
B. Multiple risk stock
C. Total risk stock
D. Average risk stock
External factors such as expiration of basic patents and industry competition effect____________?
A. Competition premium
B. Patents premium
C. Company’s beta
D. Expiry premium
Beta coefficient is used to measure market risk which is an index of__________?
A. Market risk volatility
B. Coefficient risk volatility
C. Stock market volatility
D. Portfolio market portfolio
A portfolio consists of all stocks in a market is classified as____________?
A. Market portfolio
B. Correlated portfolio
C. Return portfolio
D. Diversified portfolio
Risk which is caused by events such as strikes, unsuccessful marketing programs and other lawsuits is classified as____________?
A. Portfolio risk
B. Stock risk
C. Diversifiable risk
D. Market risk
In capital asset pricing model, stock with high standard deviation tend to have________?
A. High beta
B. Low beta
C. Low variation
D. High variation
Standard deviation is divided by expected rate of return is used to calculate_________?
A. Coefficient of variation
B. Coefficient of standard
C. Coefficient of deviation
D. Coefficient of return
Finance Mcqs
A tighter probability distribution shows the___________?
A. Expected risk
B. Lower risk
C. Higher risk
D. Peaked risk
Coefficient of variation is used to identify an effect of__________?
A. Return
B. Risk
C. Deviation
D. Both A and B
Chance of happening any unfavorable event in near future is classified as___________?
A. Probability
B. Event happening
C. Chance
D. Risk
Stock which has higher correlation with market tend to have__________?
A. Low beta, more risky
B. High beta, less risky
C. High beta, more risky
D. Low beta, less risky
Tendency of measuring correlation of two variables is classified as_________?
A. Variable coefficient
B. Tendency coefficient
C. Correlation coefficient
D. Double coefficient
Term structure premium, an inflation of bond and bond default premium are included in_________________?
A. Risk factors
B. Multi model
C. Bond buying factors
D. Premium factors
Chance of occurrence of any event is classified as_____________?
A. Probability
B. Chance
C. Risk
D. Event happening
Tendency of moving together of two variables is classified as_____________?
A. Correlation
B. Variables tendency
C. Move tendency
D. Double tendency
Relationship between risk and required return is classified as___________?
A. Security market line
B. Market risk line
C. Required return line
D. Riskier return line
Coefficient of beta is used to measure stock volatility_____________?
A. Ir-relative to market
B. Relative to market
C. Coefficient of market
D. Same with market
Mostly in financials, risk of portfolio is smaller than that of asset’s________?
A. Mean correlation
B. Weighted average
C. Mean
D. Negative correlation
Portfolio which consists of perfectly positive correlated assets having no effect of___________?
A. Positivity
B. Negativity
C. Correlation
D. Diversification
Correct measure of risk of stock is called_____________?
A. Variance
B. Beta
C. Alpha
D. Market relevance
According to market risk premium, an amount of risk premium depends upon investor______________?
A. Market aversion
B. Risk aversion
C. Risk taking
D. Portfolio aversion
Weighted average of probabilities is classified as____________?
A. Past rate of return
B. Expected rate of return
C. Average rate of return
D. Weighted rate of return
In an individual stock, relevant risk is classified as___________?
A. Stand-alone coefficient
B. Beta coefficient
C. Alpha coefficient
D. Relevant coefficient
Standard deviation is 18% and coefficient of variation is 1.5% an expected rate of return will be_____________?
A. 19.50%
B. 12%
C. 27%
D. none of above
Proceeds of company shares of sold stock is recorded in___________?
A. Due stock account
B. Common stock account
C. Preferred stock account
D. Preceded stock account
In time value of money, nominal rate is_______________?
A. Not shown on timeline
B. Multiplied on timeline
C. Shown on timeline
D. Divided on timeline
An annual estimated cost of assets uses up every year is included__________?
A. Depreciation and amortization
B. Net profit
C. Net sales
D. Net income
In calculation of net cash flow, depreciation and amortization are treated as________?
A. Income expenses
B. Current liabilities
C. Non-cash revenues
D. Non-cash charges
Stockholders that do not get benefits even if company’s earnings grow are classified as_____________?
A. Preferred stockholders
B. Hybrid stockholders
C. Common stockholders
D. Debt holders
Number of shares outstanding if it is divided by net income for using to calculate___________?
A. Earning per share
B. Book value of share
C. Dividends per share
D. Market value of shares
An income available for shareholders after deducting expenses and taxes from revenues is classified as______________?
A. Net income
B. Net expenses
C. Net earnings
D. Net revenues
Process of calculating future value of money from present value is classified as____________?
A. Compounding
B. Money value
C. Discounting
D. Stock value
In balance sheet, sum of retained earnings and common stock are considered as_____________?
A. Due equity
B. Preferred equity
C. Common perpetuity
D. Common equity
Purchase cost of assets over its useful life is classified as_________?
A. Appreciated assets
B. Depreciation
C. Appreciation
D. Appreciated liabilities
Securities with less predictable prices and have longer maturity time is considered as_______________?
A. Long-term investments
B. Cash equivalents
C. Inventories
D. Short-term investments
An information uses by investors for expecting future earnings is all recorded in__________?
A. Stock report
B. Annual report
C. Five years report
D. Exchange report
Rate of return that an investment provides its investor is classified as__________?
A. International rate of return
B. Internal rate of return
C. Investment return rate
D. Intrinsic rate of return
In calculation of net cash flow, deferred tax payments are classified as______________?
A. Current liabilities
B. Non-cash charges
C. Non-cash revenues
D. Income expense
Method of inventory recording gives lower cost of goods sold in income statement is classified as______________?
A. Last out receivable
B. Last in first out
C. First out receivable
D. First in first out
Non cash revenues and non cash charges if it subtracted from net income is equal to___________?
A. Retained cash flow
B. Free cash flow
C. Net cash flow
D. Financing cash flow
Land, buildings, and factory fixed equipment are classified as____________?
A. Tangible asset
B. Financial asset
C. Non-tangible assets
D. Financial liability
An interest rate which is paid by money borrower and charged by lender is considered as_____________?
A. Annuity rate of return
B. Periodic rate
C. Perpetuity rate of return
D. Annual rate
Intangible assets such as copyrights, trademarks and patents are applicable for____________?
A. Stock amortization
B. Amortization
C. Depreciation
D. Perishable assets
A loan that is repaid on monthly, quarterly and annual basis in equal payments is classified as____________?
A. Amortized loan
B. Appreciated loan
C. Depreciated loan
D. Repaid payments
Nominal rate which is quoted to consumers on loans is considered as__________?
A. Annual percentage rate
B. Loan rate of return
C. Annual rate of return
D. Local rate of return
Financial securities that can be converted into cash at closing to their book value price are classified as_______________?
A. Short-term investments
B. Inventories
C. Cash equivalents
D. Long-term investments
Prices of bonds will be decreased if an interest rates_________?
A. Rises
B. Equals
C. Declines
D. None of above
If payment of security is paid as $100 at end of year for three years, it is an example of______________?
A. Lump sum amount
B. Fixed payment investment
C. Fixed interval investment
D. Annuity
Collection of net income, amortization and depreciation is divided by common shares outstanding to calculate______________?
A. Cash flow of investment
B. Cash flow per share
C. Cash flow of financing activities
D. Cash flow of operations
In time value of money, periodic rate is_________?
A. Multiplied on timeline
B. Shown on timeline
C. Not shown on timeline
D. Divided on timeline
Payment if it is divided with interest rate will be formula of__________?
A. Due perpetuity
B. Present value of perpetuity
C. Future value of perpetuity
D. Deferred perpetuity
In calculation of time, value of money, ”N ”represents___________?
A. Number of payment periods
B. Number of installments
C. Number of investment
D. Number of premium received
Procedure of finding present values in time value of money is classified as____________?
A. Money value
B. Discounting
C. Compounding
D. Stock value
A company who issues bonds or stocks in result raised funds which finally____________?
A. Increases equity
B. Increases liabilities
C. Increases cash
D. Decreases cash
A stock which is hybrid and works as a cross between debt and common stock is considered as_______________?
A. Common liabilities
B. Hybrid stock
C. Debt liabilities
D. Preferred stock
An annuity with an extended life is classified as_____________?
A. Deferred perpetuity
B. Perpetuity
C. Extended life
D. Due perpetuity
rate which is divided by compounding periods to calculate periodic rate must be___________________?
A. Deferred annuity return
B. Annuity return
C. Nominal rate
D. Semiannual discount rate
Future value of interest if it is calculated two times a year can be a classified as__________________?
A. Annual discounting
B. Semiannual discounting
C. Annual compounding
D. Semiannual compounding
In a statement of cash flows, a company investing in short-term financial investments and in fixed assets results in______________?
A. Increased liabilities
B. Decreased cash
C. Increased cash
D. Increased equity
Total amount of depreciation charged on long term assets is classified as______________?
A. Accumulated depreciation
B. Accumulated appreciation
C. Depleted depreciation
D. Accumulated appreciation schedule
Payment of security if it is made at end of each period such as beginning of year is classified as______________?
A. Annuity due
B. Ordinary annuity
C. Payment fixed series
D. Deferred annuity
Values recorded as determined in marketplace are considered as_______________?
A. Market values
B. Appreciated values
C. Book values
D. Depreciated values
In situation of bankruptcy, stock which is recorded above common stock and below debt account is_____________?
A. Hybrid stock
B. Preferred stock
C. Debt liabilities
D. Common liabilities