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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).

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1 Finance MCQs

The mortgages taken to purchase townhouses and apartment complexes are called?

  • Multi-mortgage
  • Multifamily dwelling mortgages
  • Sovereign dwelling mortgages
  • Primary dwelling mortgages
0 Comments
Correct Answer: B. Multifamily dwelling mortgages

Explanation:

Mortgages used to finance the purchase of townhouses, apartment buildings, and other residential properties with ... Read More Details

2 Finance MCQs

The percentage change in bond price for a given change in interest rate is called __________.

  • Premium yield
  • Elasticity
  • Maturity yield
  • Duration
0 Comments
Correct Answer: D. Duration

Explanation:

In fixed-income markets, duration measures the sensitivity of a bond’s price to changes ... Read More Details

3 Finance MCQs

The duration divided by (1 + interest rate) is called ____________?

  • Decreased duration
  • Increased duration
  • Modified duration
  • At par duration
0 Comments
Correct Answer: C. Modified duration

Explanation:

Modified duration is calculated by dividing a bond’s Macaulay duration by ... Read More Details

4 Finance MCQs

The inverse relationship between bond price change and interest rate change is called?

  • Negative discount
  • Negative duration
  • Positive duration
  • Positive discount
0 Comments
Correct Answer: B. Negative duration

Explanation:

In bond markets, there is typically an inverse relationship between bond prices and ... Read More Details

5 Finance MCQs

The situation where most of the investment money is borrowed from a broker is called __________.

  • Future investment
  • Forward investment
  • Leveraged investment
  • Non-leveraged investment
0 Comments
Correct Answer: C. Leveraged investment

Explanation:

When an investor borrows a large portion of funds from a broker to buy securities, ... Read More Details

6 Finance MCQs

The upfront fee that a buyer must pay to the seller in an options contract is called __________.

  • Call premium
  • Discount premium
  • Strike premium
  • Exercise premium
0 Comments
Correct Answer: A. Call premium

Explanation:

In an options contract, the buyer must pay an upfront fee to the seller in ... Read More Details

7 Finance MCQs

The main participants in the forward markets are __________.

  • Commercial banks
  • Broker-dealers
  • Investment banks
  • All of the above
0 Comments
Correct Answer: D. All of the above

Explanation:

Forward markets are mainly used for trading customized contracts where two parties agree to buy ... Read More Details

8 Finance MCQs

The type of index where current stock values are added together and divided by the stock value on the base date is called __________.

  • Value-weighted index
  • Herring weighted index
  • Primary market index
  • Stock market index
0 Comments
Correct Answer: D. Stock market index

Explanation:

A stock market index is a statistical measure that shows how the overall ... Read More Details

9 Finance MCQs

The difference between the price of the underlying asset and the exercise price of an option is called __________.

  • Extrinsic value of European option
  • Intrinsic value of option
  • Extrinsic value of option
  • Intrinsic value of European option
0 Comments
Correct Answer: B. Intrinsic value of option

Explanation:

The intrinsic value of an option is the difference between the current market ... Read More Details

10 Finance MCQs

The traders who take positions in the futures market based on expected price changes of underlying assets are called __________.

  • Professional traders
  • Non-investment traders
  • Position traders
  • Futures market traders
0 Comments
Correct Answer: C. Position traders

Explanation:

In the futures market, position traders are those who buy or ... Read More Details