Financial Management MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13

1.
The risk that arises due to change in the purchasing power is called ?

A. Financial risk

B. Interest rate risk

C. Business risk

D. Inflation risk

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2.
_______ uses a computer program in an attempt to imitate the brain in analysing securities.

A. Decision trees

B. Program trading

C. Day traders

D. Neural networks

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3.
The factor(s) which affect(s) P/E ratio is/are __________.

A. Growth rate

B. Debt proportion

C. Retention ratio

D. All of the above

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4.
The difference between the cash price and the futures price on the same asset or commodity is known as the________________.

A. basis

B. spread

C. yield spread

D. premium

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5.
Long -term solvency is indicated by

A. Liquidity ratio

B. Debt-equity ratio

C. Return coverage ratio

D. Both a and b

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6.
Speculators in the futures markets_____________.

A. make the market more volatile

B. contribute liquidity to the market

C. engage mainly in short sales

D. serve no real economic function

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7.
Which of the following is/are the problem(s) encountered in financial statement analysis?

A. Development of benchmarks

B. Window dressing

C. Interpretation of results

D. All of the above

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8.
A major difference between individual and institutional investors is their very different_______.

A. approaches to market analysis

B. evaluations of return

C. time horizons

D. types of securities held in their portfolios

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9.
Earnings Per Share (EPS) is equal to __________.

A. Profit before tax/No of outstanding shares

B. Profit after tax/No of outstanding shares

C. Profit after tax/Amount of equity share capital

D. Profit after tax less equity dividends/No of outstanding shares

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10.
__________ are a way U. S. investors can invest in foreign companies.

A. ADRs

B. IRAs

C. SDRs

D. GNMAs

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Financial Management MCQ Questions and Solutions with Explanations | Commerce

1. The risk that arises due to change in the purchasing power is called ?

Answer & Solution

2. _______ uses a computer program in an attempt to imitate the brain in analysing securities.

Answer & Solution

3. The factor(s) which affect(s) P/E ratio is/are __________.

Answer & Solution

4. The difference between the cash price and the futures price on the same asset or commodity is known as the________________.

Answer & Solution

5. Long -term solvency is indicated by

Answer & Solution

6. Speculators in the futures markets_____________.

Answer & Solution

7. Which of the following is/are the problem(s) encountered in financial statement analysis?

Answer & Solution

8. A major difference between individual and institutional investors is their very different_______.

Answer & Solution

9. Earnings Per Share (EPS) is equal to __________.

Answer & Solution

10. __________ are a way U. S. investors can invest in foreign companies.

Answer & Solution

Read More Section(Financial Management)

1.
The risk that arises due to change in the purchasing power is called ?

2.
_______ uses a computer program in an attempt to imitate the brain in analysing securities.

3.
The factor(s) which affect(s) P/E ratio is/are __________.

4.
The difference between the cash price and the futures price on the same asset or commodity is known as the________________.

5.
Long -term solvency is indicated by

6.
Speculators in the futures markets_____________.

7.
Which of the following is/are the problem(s) encountered in financial statement analysis?

8.
A major difference between individual and institutional investors is their very different_______.

9.
Earnings Per Share (EPS) is equal to __________.

10.
__________ are a way U. S. investors can invest in foreign companies.