Job Exams Hero

Business & Finance MCQs

Prepare for competitive exams with our comprehensive Business & Finance MCQs, designed for students of commerce and candidates appearing in recruitment tests. These multiple-choice questions cover financial management, accounting, auditing, business law, corporate governance, investment analysis, banking, cost of capital, stock markets, marketing, human resource management, and business communication. Highly beneficial for aspirants of PPSC, FPSC, CSS, NTS, SPSC, BPSC, KPSC, ETEA, AJKPSC, as well as banking sector exams, commerce lecturer tests, and business-related university assessments (B.Com, M.Com, MBA, ACCA, CA).

Browse Categories
Quick Results 0 found

Question Coming Soon!

"" isn't in our database yet, but we're adding new questions daily.

1 Finance MCQs

In the borrowing and lending of federal funds, the federal funds rate is determined by the interaction of which two factors?

  • Assets and liabilities
  • Cost and marketing
  • Supply and demand
  • Income and expenses
0 Comments
Correct Answer: C. Supply and demand

Explanation:

The federal funds rate is the interest rate at which banks lend reserve balances to ... Read More Details

2 Finance MCQs

Which financial instrument is used to raise funds for working capital?

  • Commercial paper
  • Commercial notes
  • Notes payable
  • Notes receivable
0 Comments
Correct Answer: A. Commercial paper

Explanation:

Commercial paper is a short-term, unsecured debt instrument issued by corporations to meet ... Read More Details

3 Finance MCQs

The demand for heavy loans can cause ____________?

  • Excess funds for banks
  • Deficiencies for banks
  • Organized reservation
  • Competitive reservations
0 Comments
Correct Answer: B. Deficiencies for banks

Explanation:

When the demand for heavy loans increases, banks may experience a deficiency of funds because ... Read More Details

4 Finance MCQs

Investors usually hold commercial papers for __________?

  • Issuance to maturity
  • Within 1 to 2 days
  • Within 3 to 4 days
  • Within 4 to 5 days
0 Comments
Correct Answer: A. Issuance to maturity

Explanation:

Commercial papers are short-term debt instruments issued by corporations to meet immediate funding needs. Investors ... Read More Details

5 Finance MCQs

Markets that reallocate liquid funds in fixed amounts are called __________?

  • Capital markets
  • Debt markets
  • Secondary markets
  • Primary markets
0 Comments
Correct Answer: A. Capital markets

Explanation:

Capital markets are financial markets where long-term funds are raised and allocated. They ... Read More Details

6 Finance MCQs

CD rates are usually negotiated between __________?

  • Bank and COD buyer
  • Bank and stock market
  • Stock market and COD buyer
  • Indirect negotiations of buyers
0 Comments
Correct Answer: A. Bank and COD buyer

Explanation:

The rates of Certificates of Deposit (CDs) are generally set through direct negotiation between the ... Read More Details

7 Finance MCQs

A commercial paper with a low interest rate indicates __________?

  • Payables rating
  • Commercial rating
  • Poor credit rating
  • Better credit rating
0 Comments
Correct Answer: D. Better credit rating

Explanation:

Commercial paper with a low interest rate reflects that the issuer has a strong financial ... Read More Details

8 Finance MCQs

The federal funds rate is determined by the interaction of __________?

  • Assets and liability
  • Cost and marketing
  • Supply and demand
  • Income and expense
0 Comments
Correct Answer: D. Income and expense

Explanation:

The federal funds rate is the interest rate at which banks lend reserves ... Read More Details

9 Finance MCQs

Which agreement involves selling a security with a promise to buy it back at maturity?

  • Repurchasing commercial notes
  • Repurchase bills
  • Purchase agreement
  • Reverse repurchase agreement
0 Comments
Correct Answer: D. Reverse repurchase agreement

Explanation:

A reverse repurchase agreement (reverse repo) is a short-term transaction where one party ... Read More Details

10 Finance MCQs

Which instrument does the Federal Reserve use to manage money supply and interest rates?

  • Treasury notes
  • Repurchase agreements
  • Commercial payable notes
  • Commercial receivable notes
0 Comments
Correct Answer: B. Repurchase agreements

Explanation:

The Federal Reserve uses repurchase agreements (repos) as a monetary policy tool to ... Read More Details