Financial Management | Chapter 3 | Part 3 | MBA MCQs | FM

Finacial Management MCQs

  

 

1. Growth in earnings per share is primarily resultant of growth in
   1.   yearly value
   2.   Dividends
   3.   asset value
   4.   Fundamental value
2. A price for equity is called
   1.   interest rate
   2.   debt rate
   3.   cost of equity
   4.   investment return
3. Risk in which value of investment depends on what happens to foreign exchange rates is classified as
   1.   foreign risk
   2.   preferred risk
   3.   exchange rate risk
   4.   country risk
4. Corporations such as Citigroup, American Express and Fidelity are classified as
   1.   financial services corporations
   2.   common service corporations
   3.   preferred service corporations
   4.   commercial service corporations
5. Financial corporations which serve individual savers and commercial mortgage borrowers areclassified as
   1.   savings associations
   2.   loans associations
   3.   preferred and common associations
   4.   savings and loans associations
6. A regulatory body which licenses brokers and oversees traders is classified as
   1.   international firm of auction system
   2.   national association of securities dealers
   3.   national firm of equity dealers
   4.   international association of network dealers
7. Companies take savings as premium, invest in bonds and make payments to beneficiaries are classifiedas
   1.   debit unions
   2.   life insurance companies
   3.   credit unions
   4.   auto purchases
8. Federal government tax revenues if it exceeds government spending then it is classified as
   1.   federal budget
   2.   budget surplus
   3.   budget deficit
   4.   Federal Reserve
9. Mutual fund allows investors to sale out their share during any normal trading hours is classified as
   1.   exchange traded fund
   2.   money trade fund
   3.   management expense
   4.   Capital trade fund
10. Step in initial public offering in which hired agents act on behalf of owners is classified as
    1.   corporation external problems
    2.   Agency problems
    3.   hiring problems
    4.   corporation internal problems
11. Type of financial security in which loans are secured by borrower's property is classified as
    1.   municipal bonds
    2.   mortgages
    3.   U.S treasury bonds
    4.   corporate bonds
12. In financial markets, period of maturity more than five years of financial instruments is classified as
    1.   intermediate term
    2.   long-term
    3.   short-term
    4.   capital term
13. Type of financial securities that mature in less than a year are classified as
    1.   saving intermediaries
    2.   discounted intermediaries
    3.   money market securities
    4.   capital market securities
14. Rate of return which is asked by investors is classified as
    1.   average cost of capital
    2.   weighted average cost of capital
    3.   weighted cost of capital
    4.   mean cost of capital
15. Type of financial securities that matures in less than a year are classified as
    1.   money market securities
    2.   capital market securities
    3.   saving intermediaries
    4.   discounted intermediaries
16. Markets which bring closer institutions needing funds and with surplus funds are classified as
    1.   corporate institutions
    2.   retirement planners
    3.   financial markets
    4.   hedge firms
17. Sales revenue $90,000, operating taxes $30,000 and operating capital $15,000 then value of free cashflows (in USD) will be
    1.   45000
    2.   13500
    3.   65000
    4.   75000
18. Cost of money is affected by factors which includes
    1.   production opportunities
    2.   risk
    3.   all the above
    4.   inflation
19. Markets in which corporations raise capital for creating market transaction which are classified as
    1.   commercial markets
    2.   consumer credit loans
    3.   primary markets
    4.   residential markets
20. Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as
    1.   primary assets
    2.   competitive instruments
    3.   financial instruments
    4.   capital assets