Business Finance MCQs

Question 1

In SARFAESI Act, 'E' stands for

Accepted Answer

Enforcement

Answer

Equity

Answer

Enhancement

Answer

Empowerment

Question 2

What is the popular term used for a type of option in Foreign Exchange Market which provides the holder with the right to purchase or sell foreign currency at the most favourable exchange rate realized over the life of the option?

Accepted Answer

Look-back option

Answer

Forward reversing option

Answer

Preference option

Answer

Basket option

Question 3

Which of the following refers to cash inflow under the payback period method?

Accepted Answer

Cash flow before depreciation and after taxes

Answer

Cash flow before depreciation and taxes

Answer

Cash flow after depreciation and taxes

Answer

Cash flow after depreciation but before taxes

Question 4

In the Fiat system

Accepted Answer

Currency notes issued carry more value than the material used in them

Answer

Automatic demonetization takes place

Answer

Currency notes issued carry the same value equal to the material used in them

Answer

They are issued by private banks

Question 5

Finance is related to

Accepted Answer

monetary resources

Answer

tax planning

Answer

borrowing

Answer

lending

Question 6

Which of the following are key characteristics of ordinary shares in limited companies?

Accepted Answer

Have a limited life, voting rights, and receive dividends

Answer

Havea limited lifewith no voting rights, but receive dividends

Answer

Have an unlimited life, voting rights, and receive dividends

Answer

Havean unlimited life and voting rights, but receive no dividends

Question 7

Which of the following statement is/are correct?

Accepted Answer

Accounting rate of return method establishes ratio of average annual profits to total outlay

Answer

Payback period provides approximation of the rate of return

Answer

Where revenues are unequal, discounted cash flow method is used

Answer

None of the above

Question 8

Which form of market efficiency states that current security prices fully reflect all information, both public and private?

Accepted Answer

Strong

Answer

Weak

Answer

Semi-strong

Answer

None of the above

Question 9

Which form of market efficiency states that current prices fully reflect the historical sequence of prices?

Accepted Answer

Weak

Answer

Semi-strong

Answer

Strong

Answer

None of the above