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1 Finance MCQs

You want to buy a television costing Rs. 10,000. If you currently have Rs. 6,000 to invest at an annual interest rate of 5% compounded annually, how many years will it take to reach your goal?

  • 8.42 years
  • 10.51 years
  • 15.75 years
  • 18.78 years
0 Comments
Correct Answer: B. 10.51 years

Explanation:

The correct option is this 10.51 years.


In Finance MCQs, calculating the ... Read More Details

2 Finance MCQs

For two identical bonds with different maturities, the price of which bond will be less sensitive to interest rate changes?

  • Long-term; short-term
  • Short-term; long-term
  • Lower-coupon; higher-coupon
  • None of the given options
0 Comments
Correct Answer: B. Short-term; long-term

Explanation:

The correct option is this Short-term; long-term.


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3 Finance MCQs

Which of the following areas is NOT typically covered under business finance?

  • Financing
  • Investing
  • Managing day-to-day expenses
  • None of the given options
0 Comments
Correct Answer: D. None of the given options

Explanation:

The correct option is this None of the given options.


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4 Finance MCQs

If a company has a current ratio of 1, what will be its net working capital?

  • Positive
  • Negative
  • Zero
  • None of the given options
0 Comments
Correct Answer: C. Zero

Explanation:

The correct option is this Zero.


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5 Finance MCQs

The retention ratio is used to measure which aspect of a company’s financial decisions?

  • Operating efficiency
  • Asset use efficiency
  • Financial policy
  • Dividend policy
0 Comments
Correct Answer: D. Dividend policy

Explanation:

The correct option is this Dividend policy.


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6 Finance MCQs

How many years will it take to fully repay a loan of Rs. 11,000 if the annual payment is Rs. 1,241.08 and the interest rate is 5% per year?

  • 6 years
  • 12 years
  • 24 years
  • 48 years
0 Comments
Correct Answer: B. 12 years

Explanation:

The correct option is this 12 years.


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7 Finance MCQs

Which term describes the risk faced by bondholders due to changes in market interest rates?

  • Fluctuation Risk
  • Interest Rate Risk
  • Real-Time Risk
  • Inflation Risk
0 Comments
Correct Answer: B. Interest Rate Risk

Explanation:

The correct option is this Interest Rate Risk.


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8 Finance MCQs

Standard Corporation sold fully depreciated equipment for Rs. 5,000. On the cash flow statement, this transaction will be classified as which of the following?

  • Operating activity
  • Investing activity
  • Financing activity
  • None of the given options
0 Comments
Correct Answer: B. Investing activity

Explanation:

The correct option is this Investing activity.


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9 Finance MCQs

Mr. Y and Mr. Z are planning to pool their capital to run a business. Which type of business are they likely to form?

  • Sole-proprietorship
  • Partnership
  • Corporation
  • None of the given options
0 Comments
Correct Answer: B. Partnership

Explanation:

The correct option is this Partnership.


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10 Finance MCQs

The most important item that can be extracted from a firm’s financial statements is the actual what?

  • Net Working Capital
  • Cash Flow
  • Net Present Value
  • None of the given options
0 Comments
Correct Answer: B. Cash Flow

Explanation:

The correct option is this Cash Flow.


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