☾★Academy of PakistanTest & Learning

804Active Users

☾★Academy of PakistanTest & Learning

Home Test Study & Learn Past Papers Internships Pakistan Jobs Scholarships PDFs About Us

804Active Users

Home Test Study & Learn Past Papers Internships Pakistan Jobs Scholarships Submit MCQs Profile

Finance MCQs with Explanations

Read every question, see the correct answer, and understand the explanation at your own pace. Study mode has no timer and no negative marking.

40%

280 of 694MCQs reviewed

Study Mode — explanations are always visiblePrefer a timed quiz? Start test

281FinanceMedium

Between the two identical bonds having different maturity periods, the price of the bond will change less than that of bond.

Ashort-term; long-term

Blong-term; short-term

CNone of the given options

lower-coupon; higher-coupon

Correct answer

A. short-term; long-term

Explanation

The longer the time to maturity, all else being equal, increases duration. Higher duration = higher sensitivity to interest rate changes. Interest rates higher = price lower.

282FinanceMedium

Rate on debt that increases as soon market rises is classified as________?

ARising bet rate

BFloating rate debt

CStable debt rate

DMarket rate debt

Correct answer

B. Floating rate debt

Explanation

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

283FinanceMedium

The value of option issued to call debt is $940 and return rate on callable bond is $480 then return rate on non-callable bond is __________?

A1620

B460

C1520

D1420

Correct answer

B. 460

Explanation

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

284FinanceMedium

In capital budgeting, a negative net present value results in _________?

Anegative economic value added

Bpercent economic value added

Czero economic value added

Dpositive economic value added

Correct answer

A. negative economic value added

Explanation

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

285FinanceMedium

If book value is greater than market value comparison with investors for future stock are considered as_______________?

AInexperienced

BExperienced

CPessimistic

DOptimistic

Correct answer

C. Pessimistic

Explanation

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

286FinanceMedium

Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?

AInterest Rate Risk

BReal-Time Risk

CFluctuations Risk

DInflation Risk

Correct answer

A. Interest Rate Risk

Explanation

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

287FinanceMedium

The call premium is $385 and the face value of the bond is $285 then the call price of bonds is __________?

A$100

B$570

C$670

D$770

Correct answer

D. $770

Explanation

$770 is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.

288FinanceMedium

A techniques uses to identify financial statements trends are included____________?

APercent change analysis

BReturning ratios analysis

CBoth A and B

DCommon size analysis

Correct answer

C. Both A and B

Explanation

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

289FinanceMedium

Payment if it is divided with interest rate will be formula of__________?

ADeferred perpetuity

BDue perpetuity

CFuture value of perpetuity

DPresent value of perpetuity

Correct answer

D. Present value of perpetuity

Explanation

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

290FinanceMedium

Which of the following item provides the important function of shielding part of income from taxes?

AInventory

BMachinery

CDepreciation

DSupplies

Correct answer

C. Depreciation

Explanation

Depreciation expenses are deducted from net income for tax purpose.

PreviousNext

Study this subject

Browse all 694 questions in groups of ten. Each question also has a permanent page that Google and students can open directly.

Quick facts

Questions694

Study pages70

Current page29

How to learn

Read the question before viewing choices.
Compare the correct answer with alternatives.
Use the quiz after completing a study page.

Finance MCQs with Explanations

Between the two identical bonds having different maturity periods, the price of the ______ bond will change less than that of ______ bond.

Rate on debt that increases as soon market rises is classified as________?

The value of option issued to call debt is $940 and return rate on callable bond is $480 then return rate on non-callable bond is __________?

In capital budgeting, a negative net present value results in _________?

If book value is greater than market value comparison with investors for future stock are considered as_______________?

Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?

The call premium is $385 and the face value of the bond is $285 then the call price of bonds is __________?

A techniques uses to identify financial statements trends are included____________?

Payment if it is divided with interest rate will be formula of__________?

Which of the following item provides the important function of shielding part of income from taxes?

Between the two identical bonds having different maturity periods, the price of the bond will change less than that of bond.