ExamVeda
Login
Home

Financial Management MCQ Questions and Solutions with Explanations | Commerce

Financial Management 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. Financial Management 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-5 section-10

Each section contains 100 MCQs on Financial Management .
41
Markets in which corporations raise capital for creating market transaction which are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Markets in which corporations raise capital for creating market transaction which are classified as primary markets. The primary market is where securities are created. It's in this market that firms sell (float) new stocks and bonds to the public for the first time. An initial public offering, or IPO, is an example of a primary market.
42
Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as financial instruments. Financial instruments are assets that can be traded, or they can also be seen as packages of capital that may be traded. Most types of financial instruments provide efficient flow and transfer of capital all throughout the world's investors.
43
Set of rules consisting of behavior towards its directors, creditors, shareholders, competitors and community is considered as
Discuss
Answer & Solution
Answer: Option C
Solution:
Set of rules consisting of behavior towards its directors, creditors, shareholders, competitors and community is considered as corporate governance. Corporate governance is the combination of rules, processes or laws by which businesses are operated, regulated or controlled.
44
New York Stock Exchange and Nada stock market are classified as types of
Discuss
Answer & Solution
Answer: Option C
Solution:
New York Stock Exchange and Nada stock market are classified as types of secondary stock market. The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.
45
Price for debt is called
Discuss
Answer & Solution
Answer: Option D
Solution:
Price for debt is called interest rate. An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum).
46
In corporation characteristics, an easy transferring and division of stock of shares is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
In corporation characteristics, an easy transferring and division of stock of shares is classified as ownership interest transferability.
47
In financial markets, period of maturity less than one year of financial instruments is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
In financial markets, period of maturity less than one year of financial instruments is classified as short-term. Money market has become a component of the financial market for buying and selling of securities of short-term maturities, of one year or less, such as treasury bills and commercial papers.
48
Condition in which company's imports are more than its exports is classified as
Discuss
Answer & Solution
Answer: Option B
Solution:
Condition in which company's imports are more than its exports is classified as foreign trade deficits. A trade deficit is an economic measure of international trade in which a country's imports exceed its exports. It represents an outflow of domestic currency to foreign markets.
49
A markets which deals with long-term corporate stocks are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
A markets which deals with long-term corporate stocks are classified as capital markets. Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who are in need of capital.
50
Subset of primary market where firms go publicly by issuing stocks in financial markets is considered as
Discuss
Answer & Solution
Answer: Option A
Solution:
Subset of primary market where firms go publicly by issuing stocks in financial markets is considered as initial public offering market. An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors.