MCQs4All - Finance Collection

Finance MCQs for NTS, FPSC, CSS, PPSC, PMS, UTS, FTS, OTS, Accounting, MBA, BBA of past papers

Question. An inflation rate including in quoted interest rate on security, is inflation rate
  1. expected over security life
  2. expected at deferred call
  3. at bond issuance
  4. expected at time of maturity
Question. An interest rate which is paid by money borrower and charged by lender is considered as
  1. annual rate
  2. periodic rate
  3. perpetuity rate of return
  4. annuity rate of return
Question. An interest rate which is quoted by brokers, banks and other financial institutions is classified as
  1. annuity rate
  2. perpetuity rate
  3. nominal rate
  4. external rate of return
Question. An interest rate which is used in calculation of cash flows of bonds is called
  1. required rate of redemption
  2. required rate of earnings
  3. required rate of return
  4. required option
Question. An interest yield = 7.9% and capital gains yield = 2.5% then total rate of return is
  1. 0.1
  2. 0.0316
  3. 0.0031
  4. 0.054
Question. An internal rate of return in capital budgeting can be modified to make it representative of
  1. relative outflow
  2. relative inflow
  3. relative cost
  4. relative profitability
Question. An inventory recording in balance sheet includes
  1. first in first out
  2. last in first out
  3. last in last out
  4. Both A and B
Question. An investment outlay cash flow is $2000, an operating cash flow is $1500 and salvage cash flow is $3000 then free cash flow would be
  1. 500
  2. 2500
  3. 0.065
  4. 6500
Question. An investment outlay cash flow is $4000, operating cash flow is $1000 and salvage cash flow is $5000 then free cash flow would be
  1. 10000
  2. 8000
  3. zero
  4. 4000
Question. An investor who buys shares and writes a call option on stock is classified as
  1. put investor
  2. call investor
  3. hedger
  4. volatile hedge
Question. An official entity that represents bondholders and ensures stated rules in indenture is classified as
  1. trustee
  2. trust
  3. stated entity
  4. owner entity
Question. An operating cash flows is $12000 and gross fixed asset expenditure is $5000 then free cash flow will be
  1. −$7000
  2. 7000
  3. 17000
  4. −$17000
Question. An opposite of perfect positive correlation + 1.0 is called
  1. negative correlation
  2. multiple correlation
  3. divisor correlation
  4. none of above