MCQOPTIONS
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MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The financial security issues by major banks and risk depends on strength of issuer is classified as |
| A. | negotiable certificate of deposit |
| B. | mutual funds |
| C. | U.S treasury bills |
| D. | commercial paper |
| Answer» B. mutual funds | |
| 2. |
The business owned by a single person in unincorporated way is called |
| A. | proprietorship |
| B. | personal business |
| C. | private corporation |
| D. | personal ownership |
| Answer» B. personal business | |
| 3. |
The total assets divided by common equity is a formula uses for calculating |
| A. | equity multiplier |
| B. | graphical multiplier |
| C. | turnover multiplier |
| D. | stock multiplier |
| Answer» B. graphical multiplier | |
| 4. |
In corporation characteristics, an easy transferring and division of stock of shares is classified as |
| A. | ownership interest transferability |
| B. | deceased transferability |
| C. | shared division |
| D. | deceased division |
| Answer» B. deceased transferability | |
| 5. |
The 'New York Stock Exchange' is an example of |
| A. | capital markets |
| B. | money markets |
| C. | liquid markets |
| D. | short-term markets |
| Answer» B. money markets | |
| 6. |
The physical location exchange or telephone networks are the types of |
| A. | long-term markets |
| B. | secondary markets |
| C. | money markets |
| D. | capital markets |
| Answer» C. money markets | |
| 7. |
The Federal Reserve policy and the federal surplus or deficit of budget affect the |
| A. | cost of production |
| B. | cost of money |
| C. | opportunity cost |
| D. | inflation risk |
| Answer» C. opportunity cost | |
| 8. |
The low default-risk security issued by financially secure firms is classified as |
| A. | U.S treasury bills |
| B. | commercial paper |
| C. | certificate of deposit |
| D. | mutual funds |
| Answer» C. certificate of deposit | |
| 9. |
The market where market makers keep the record of stock of financial instruments is classified as |
| A. | stock market |
| B. | dealer market |
| C. | outcry auction system |
| D. | face to face communication |
| Answer» C. outcry auction system | |
| 10. |
The markets dealing with residential loans, industry real estate loans, agricultural loans and commercial loans are called |
| A. | residential markets |
| B. | mortgage markets |
| C. | agriculture markets |
| D. | commercial markets |
| Answer» C. agriculture markets | |
| 11. |
The notes, mortgages, bonds, stocks, treasury bills and consumer loans are classified as |
| A. | financial instruments |
| B. | capital assets |
| C. | primary assets |
| D. | competitive instruments |
| Answer» B. capital assets | |
| 12. |
The partners who are only liable for their own part of investment are considered as |
| A. | venture partners |
| B. | corporate partners |
| C. | limited partners |
| D. | general partners |
| Answer» D. general partners | |
| 13. |
The condition in which the company's imports are more than its exports is classified as |
| A. | foreign trade |
| B. | foreign trade deficits |
| C. | foreign trade surplus |
| D. | trade surplus |
| Answer» C. foreign trade surplus | |
| 14. |
The corporate governance charter of rules of behaving is applicable on |
| A. | competitors |
| B. | shareholders |
| C. | directors |
| D. | all of the above |
| Answer» E. | |
| 15. |
The limited partners in the partnership business have |
| A. | no control |
| B. | whole control |
| C. | corporate authority |
| D. | general authority |
| Answer» B. whole control | |
| 16. |
A price for the equity is called |
| A. | interest rate |
| B. | cost of equity |
| C. | debt rate |
| D. | investment return |
| Answer» C. debt rate | |
| 17. |
The subset of primary market where firms go publicly by issuing stocks in the financial markets is considered as |
| A. | initial public offering market |
| B. | stock market |
| C. | issuance market |
| D. | first stock market |
| Answer» B. stock market | |
| 18. |
An inexpensive and easy business formation and few government regulations are the advantages of |
| A. | private corporation |
| B. | personal ownership |
| C. | proprietorship |
| D. | personal business |
| Answer» D. personal business | |
| 19. |
A retirement plans funded for workers by corporations, administered and commercial banks are classified as |
| A. | retirement funds |
| B. | pension funds |
| C. | future funds |
| D. | workers funds |
| Answer» C. future funds | |
| 20. |
The formula Sales revenue minus operating cost and taxes minus operating capital investments is used to calculate |
| A. | available income |
| B. | cash income |
| C. | free cash flows |
| D. | free distribution |
| Answer» D. free distribution | |
| 21. |
The document in a corporation which consists of amount of stock, name and addresses of directors is classified as |
| A. | liability plan |
| B. | stock planning |
| C. | corporation paperwork |
| D. | charter |
| Answer» E. | |
| 22. |
The profit margin multiply assets turnover multiply equity multiplier is used to calculate |
| A. | return on turnover |
| B. | return on stock |
| C. | return on assets |
| D. | return on equity |
| Answer» E. | |
| 23. |
The bonds issued to individuals by corporations are classified as |
| A. | municipal bonds |
| B. | corporate bonds |
| C. | U.S treasury bonds |
| D. | mortgages |
| Answer» C. U.S treasury bonds | |
| 24. |
The price of stock that companies observe in financial markets is called |
| A. | market price |
| B. | intrinsic price |
| C. | extrinsic price |
| D. | fundamental price |
| Answer» B. intrinsic price | |
| 25. |
The set of rules made by the corporation founders such as directors election procedure are classified as |
| A. | stock laws |
| B. | by laws |
| C. | liability laws |
| D. | corporate laws |
| Answer» C. liability laws | |
| 26. |
The money lends to corporations by the banks is classified as |
| A. | Eurodollar market deposits |
| B. | commercial loans |
| C. | consumer credit loans |
| D. | consumer credit loans |
| Answer» C. consumer credit loans | |
| 27. |
The markets which deal with buying and selling of bonds, mortgages, notes and stocks are considered as |
| A. | financial instruments |
| B. | financial asset markets |
| C. | physical asset markets |
| D. | easy markets |
| Answer» C. physical asset markets | |
| 28. |
The value of free cash flows $55000, operating cost and taxes $30000, then the value of sales revenues (in $) will be |
| A. | 25000 |
| B. | 85000 |
| C. | 35000 |
| D. | 45000 |
| Answer» C. 35000 | |
| 29. |
The corporations such as Citigroup, American Express and Fidelity are classified as |
| A. | financial services corporations |
| B. | common service corporations |
| C. | preferred service corporations |
| D. | commercial service corporations |
| Answer» B. common service corporations | |
| 30. |
The markets in which corporations raise capital for creating market transaction, are classified as |
| A. | commercial markets |
| B. | residential markets |
| C. | primary markets |
| D. | consumer credit loans |
| Answer» D. consumer credit loans | |
| 31. |
All the partners have limited liability in |
| A. | unlimited liability partnership |
| B. | limited liability partnership |
| C. | controlled partnership |
| D. | uncontrolled partnership |
| Answer» C. controlled partnership | |
| 32. |
The step in initial public offering in which the hired agents act on behalf of owners is classified as |
| A. | hiring problems |
| B. | agency problems |
| C. | corporation internal problems |
| D. | corporation external problems |
| Answer» C. corporation internal problems | |
| 33. |
A markets which deals with long-term corporate stocks are classified as |
| A. | liquid markets |
| B. | short-term markets |
| C. | capital markets |
| D. | money markets |
| Answer» D. money markets | |
| 34. |
The ratios which relate firm's stock to its book value per share, cash flow and earnings are classified as |
| A. | return ratios |
| B. | market value ratios |
| C. | marginal ratios |
| D. | equity ratios |
| Answer» C. marginal ratios | |
| 35. |
An equity multiplier is multiplied to return on assets to calculate |
| A. | return on assets |
| B. | return on multiplier |
| C. | return on turnover |
| D. | return on stock |
| Answer» B. return on multiplier | |
| 36. |
The financial security kept by non-financial corporations is |
| A. | deposit cheque |
| B. | distribution cost |
| C. | short term treasury bills |
| D. | short term capital cost |
| Answer» D. short term capital cost | |
| 37. |
The trading procedures dimensions include |
| A. | location dimension |
| B. | method of matching orders |
| C. | price dimension |
| D. | both a and b |
| Answer» E. | |
| 38. |
A type of business ownership in which two or more entities join together for profit purpose is classified as |
| A. | partnership |
| B. | joint business |
| C. | joint profit |
| D. | corporate business |
| Answer» B. joint business | |
| 39. |
The type of financial securities that mature in less than a year are classified as |
| A. | saving intermediaries |
| B. | discounted intermediaries |
| C. | money market securities |
| D. | capital market securities |
| Answer» E. | |
| 40. |
The risk of doing business in particular country and arises from foreign investments is classified as |
| A. | country risk |
| B. | foreign risk |
| C. | proffered risk |
| D. | common risk |
| Answer» B. foreign risk | |
| 41. |
The loans by finance companies, banks and credit unions is classified as |
| A. | consumer credit loans |
| B. | dollar bonds |
| C. | Eurodollar market deposits |
| D. | euro bonds |
| Answer» B. dollar bonds | |
| 42. |
The relevant information about the stock market price if it is given, then this price is called |
| A. | market price |
| B. | intrinsic price |
| C. | extrinsic price |
| D. | unstable price |
| Answer» C. extrinsic price | |
| 43. |
The Merrill Lynch, Morgan Stanley and Credit Suisse Group plan for raising capital is classified as |
| A. | investment banking houses |
| B. | exchange houses |
| C. | transfer houses |
| D. | foreign exchange houses |
| Answer» B. exchange houses | |
| 44. |
The markets where the assets are bought or sold within a few days or at some future dates are classified as |
| A. | spot markets |
| B. | future markets |
| C. | both a and b |
| D. | financial instruments |
| Answer» D. financial instruments | |
| 45. |
The bonds which are more riskier than corporate bonds and are issued by major corporations are classified as |
| A. | common stocks |
| B. | corporate stocks |
| C. | leases |
| D. | preferred stocks |
| Answer» E. | |
| 46. |
An unlimited liability for business debts and less capital for growth are limitations of |
| A. | proprietorship |
| B. | personal business |
| C. | private corporation |
| D. | personal ownership |
| Answer» B. personal business | |
| 47. |
In corporation characteristics, the losses are subject to funds invested actually is considered as |
| A. | limited liability |
| B. | unlimited liability |
| C. | general liability |
| D. | controlled ownership liability |
| Answer» B. unlimited liability | |
| 48. |
The low price for earnings ratio is the result of |
| A. | low riskier firms |
| B. | high riskier firms |
| C. | low dividends paid |
| D. | high marginal rate |
| Answer» B. high riskier firms | |
| 49. |
The price per share is $30 and earnings per share is $3.5 then price for earnings ratio would be |
| A. | 8.57 times |
| B. | 0.0857 |
| C. | 0.11 times |
| D. | 0.11 |
| Answer» B. 0.0857 | |
| 50. |
The price per share is $25 and the cash flow per share is $6 then the price to cash flow ratio would be |
| A. | 0.24 times |
| B. | 4.16 times |
| C. | 0.0416 |
| D. | 0.24 |
| Answer» C. 0.0416 | |