Business Finance MCQs

Question 1

Astatistical measure of the variability of a distribution around its mean is referred to as

Accepted Answer

The standard deviation

Answer

Probability distribution

Answer

The expected return

Answer

Coefficient of variation

Question 2

Currency swap is a method of

Accepted Answer

Mode of payment in international trade

Answer

Hedging against foreign exchange risk

Answer

Speculating in foreign exchange

Answer

Leverage instrument used by cooperative banks

Question 3

Which country is not using the euro?

Accepted Answer

Sweden

Answer

Greece

Answer

Italy

Answer

Portugal

Question 4

The degree of financial leverage reflects the responsiveness of

Accepted Answer

EPS to changes in EBIT

Answer

Operating income to changes in total revenue

Answer

EPS to changes in total revenue

Answer

None of the above

Question 5

The equity shareholders are the residual claimants of all earnings left after meeting all prior

Accepted Answer

claims

Answer

benefits

Answer

losses

Answer

advantageous

Question 6

How many Greeks used for hedging portfolios of options with underlying assets?

Accepted Answer

Five

Answer

Four

Answer

Six

Answer

Ten

Question 7

Under the lease agreement, the lease gets the right to

Accepted Answer

use the asset for a specified period

Answer

share profits earned by the lessor

Answer

participate in the management of the organisation

Answer

sell the assets

Question 8

Which of the following is defined as the key feature of Islamic Finance?

Accepted Answer

It does not allow interest to be paid on loans

Answer

It views money as a store of value

Answer

It is available only in Muslim countries

Answer

It allows interest to be paid on loans

Question 9

Which of the following is not a type of foreign exchange exposure?

Accepted Answer

Tax exposure

Answer

Balance sheet exposure

Answer

Transaction exposure

Answer

Economic exposure