Finance MCQs with Explanations

Explanation

STRIPS is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Preferred stocks is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

face value of bond is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Horizontal analysis is a financial analysis technique used to evaluate a company’s performance over time. By comparing prior-period financial results with more current financial results, a company is better able to spot the direction of change in account balances and the magnitude in which that change has occurred.

Explanation

The money market is part of the fixed-income market that specializes in short-term debt securities that mature in less than one year. Most money market investments often mature in three months or less.

Explanation

most illiquid securities is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

traditional international bonds is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Longer call option is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

internal rate of return is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

Explanation

Common size analysis is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.