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

Finacial Management MCQs

  

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