Business Finance MCQ Questions and Solutions with Explanations

Business Finance MCQ Questions and Solutions with Explanations | Commerce

Business Finance MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Business Finance MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-1 section-4

The more the currency supply, the more will be

A) Deflation B) Inflation C) No price change D) Disinflation

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Answer & Solution

Answer: Option B

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Which of the following project appraisal method is not based on the time value of money?

A) Payback Method B) Net Present Value Method C) Internal Rate of Return Method D) Discounted Payback Method

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Answer & Solution

Answer: Option A

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Bank pays interest on

A) deposits B) loan C) Both A and B D) Neither A nor B

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Answer & Solution

Answer: Option C

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Which risk arises, if a party discharges his obligations, but the counterparty defaults?

A) Replacement cost risk B) Principal risk C) Systematic risk D) Unsystematic risk

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Answer & Solution

Answer: Option B

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Which of the following are the types of hedging strategies?

A) Forward contracts B) Future contracts C) Money markets D) All of the above

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Answer & Solution

Answer: Option D

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Equity shareholders are called

A) guardian of the company B) owners of the company C) partners of the company D) executives of the company

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Answer & Solution

Answer: Option B

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Which is the most popular technique of working capital forecast?

A) Cash forecasting method B) Adjusted profit and loss method C) Both A and B D) None of the above

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Answer & Solution

Answer: Option C

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Which one of the following is not the objective of UTI?

A) To motility savings of the community by offering savers the triple benefits of safety, liquidity, and profitability of investments B) To channelize the pooled savings into productive outlets C) To provide finance under hire purchase finance and housing finance to its members D) To give everyone a chance to indirectly own shares and securities in a large number of select companies

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Answer & Solution

Answer: Option C

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Opportunity cost refers to

A) Variable Cost B) Short-run cost C) The cost forgone in favour of the production of another product D) Cost related to an optimum level of production

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Answer & Solution

Answer: Option C

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Net working capital is the excess of current assets over

A) total liabilities B) current liabilities C) intangible liabilities D) None of these

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Answer & Solution

Answer: Option B

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