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1 Finance MCQs

An investor’s attitude toward risk primarily determines which of the following?

  • Rate of return
  • Rate of exchange
  • Rate of intrinsic stock
  • Rate of extrinsic stock
0 Comments
Correct Answer: A. Rate of return

Explanation:

The correct option is this Rate of return.


In Finance MCQs, the relationship between ... Read More Details

2 Finance MCQs

If all relevant information about a stock is reflected in its price, what is that price called?

  • Market price
  • Intrinsic price
  • Extrinsic price
  • Unstable price
0 Comments
Correct Answer: A. Market price

Explanation:

The correct option is this Market price.


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3 Finance MCQs

When a company’s imports exceed its exports, what is this situation called?

  • Foreign trade
  • Foreign trade deficit
  • Foreign trade surplus
  • Trade surplus
0 Comments
Correct Answer: B. Foreign trade deficit

Explanation:

The correct option is this Foreign trade deficit.


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4 Finance MCQs

The cost of money is influenced by which of the following factors?

  • Production opportunities
  • Risk
  • Inflation
  • All of the above
0 Comments
Correct Answer: D. All of the above

Explanation:

The correct option is this All of the above.


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5 Finance MCQs

The process of selling a company’s stock to the general public and obtaining loans from banks is classified as what?

  • Initial public offering
  • External public offering
  • Internal public offering
  • Unprofessional offering
0 Comments
Correct Answer: A. Initial public offering

Explanation:

The correct option is this Initial Public Offering (IPO).


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6 Finance MCQs

Partners who are liable only for their own portion of the investment are considered what type of partners?

  • Venture partners
  • Corporate partners
  • Limited partners
  • General partners
0 Comments
Correct Answer: C. Limited partners

Explanation:

The correct option is this Limited partners.


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7 Finance MCQs

Markets that connect institutions needing funds with those having surplus funds are classified as what?

  • Financial markets
  • Corporate institutions
  • Hedge firms
  • Retirement planners
0 Comments
Correct Answer: A. Financial markets

Explanation:

The correct option is this Financial markets.


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8 Finance MCQs

Corporations that buy financial instruments using money collected from savers are classified as which type of corporation?

  • Debit funds
  • Credit funds
  • Mutual funds
  • Insurance funds
0 Comments
Correct Answer: C. Mutual funds

Explanation:

The correct option is this Mutual funds.


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9 Finance MCQs

The rate of return that investors require is classified as which type of cost of capital?

  • Average cost of capital
  • Mean cost of capital
  • Weighted cost of capital
  • Weighted average cost of capital
0 Comments
Correct Answer: D. Weighted average cost of capital

Explanation:

The correct option is this Weighted average cost of capital (WACC).


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10 Finance MCQs

In financial markets, a financial instrument with a maturity period of more than five years is classified as what?

  • Intermediate term
  • Capital term
  • Short-term
  • Long-term
0 Comments
Correct Answer: D. Long-term

Explanation:

The correct option is this Long-term.


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