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

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

2 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

3 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

4 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

5 Finance MCQs

When an institution lends federal funds, it records them as __________?

  • Liability on balance sheet
  • Income in income statement
  • Assets on balance sheet
  • Expense on income statement
0 Comments
Correct Answer: C. Assets on balance sheet

Explanation:

When a financial institution lends federal funds to another bank, the amount becomes a receivable ... Read More Details

6 Finance MCQs

Negotiable certificates of deposit are issued by __________?

  • Financial market
  • Banks
  • Stock exchange
  • Business corporations
0 Comments
Correct Answer: B. Banks

Explanation:

Negotiable certificates of deposit (CDs) are time deposits issued by banks to attract ... Read More Details

7 Finance MCQs

The funds transferred usually for one day between financial institutions are classified as __________?

  • Federal funds
  • Banker’s funds
  • Debt funds
  • Secured funds
0 Comments
Correct Answer: A. Federal funds

Explanation:

Federal funds refer to overnight loans of reserve balances that banks ... Read More Details

8 Finance MCQs

Commercial paper can be sold __________?

  • Issued by commercial banks
  • Directly
  • With brokers or dealers
  • Functional buyers
0 Comments
Correct Answer: B. Directly

Explanation:

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

9 Finance MCQs

The banks that handle reciprocal agreements and accounts are called __________?

  • Correspondent banks
  • Non-correspondent banks
  • Reciprocal transactions
  • Functional banks
0 Comments
Correct Answer: A. Correspondent banks

Explanation:

Correspondent banks are financial institutions that provide services on behalf of another bank, often in ... Read More Details

10 Finance MCQs

The government regulates financial markets mainly to __________?

  • Increase information available to investors
  • Ensure the soundness of the financial system
  • Create a sound atmosphere
  • Both A and B
0 Comments
Correct Answer: D. Both A and B

Explanation:

Governments regulate financial markets to protect investors and maintain stability. Regulations aim to increase transparency ... Read More Details