Finance Mcqs

Financial security with low degree risk and investment held by businesses is classified as________________?

(A) Treasury bills

(B) Commercial paper

(C) Negotiable certificate of deposit

(D) Money market mutual funds

Submitted By: Ali Uppal


As free bonds issue for welfare by industrial agencies or pollution control agencies are classified as__________?

(A) Agent bonds

(B) Development bonds

(C) Pollution control bonds

(D) Both B and C

Submitted By: Ali Uppal


Risk of fall in income due to fall in interest rates in future is classified as__________?

(A) Income risk

(B) Investment risk

(C) Reinvestment risk

(D) Mature risk

Submitted By: Ali Uppal


If coupon rate is equal to going rate of interest, then bond will be sold________?

(A) At par value

(B) Below its par value

(C) More than its par value

(D) Seasoned par value

Submitted By: Ali Uppal


Long period of bond maturity leads to_________?

(A) More price changes

(B) Stable prices

(C) Standing prices

(D) Mature prices

Submitted By: Ali Uppal


Projects which are mutually exclusive but different on scale of production or time of completion then the___________?

(A) External return method

(B) Net present value of method

(C) Net future value method

(D) Internal return method

Submitted By: Ali Uppal


Bonds issue by corporations which are more riskier than preferred stocks are classified as_____________?

(A) Leases

(B) Preferred stocks

(C) Common stocks

(D) Corporate stocks

Submitted By: Ali Uppal


Markets which deals with high liquid and short-term debt securities are classified as_____________?

(A) Capital markets

(B) Money markets

(C) Liquid markets

(D) Short-term markets

Submitted By: Ali Uppal


Firm’s promise to pay and is backed or guaranteed by bank is classified as____________?

(A) Customer’s acceptance

(B) Banker’s acceptance

(C) Federal acceptance

(D) Treasury acceptance

Submitted By: Ali Uppal


Professionals such as doctors, accountants and lawyers often make corporations are classified as____________?

(A) General professionals

(B) Professional corporation

(C) Professional association

(D) Both B and C

Submitted By: Ali Uppal