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 markets which deal with high liquid and short term debt securities are classified as |
| A. | capital markets |
| B. | money markets |
| C. | liquid markets |
| D. | short-term markets |
| Answer» C. liquid markets | |
| 2. |
The financial security in which there is no default risk and issues by U.S governments is classified as |
| A. | U.S treasury bonds |
| B. | mortgages |
| C. | municipal bonds |
| D. | corporate bonds |
| Answer» B. mortgages | |
| 3. |
The method of matching orders by posting orders of buying and selling is classified as |
| A. | electronic communication network |
| B. | electronic dealer network |
| C. | electronic stock network |
| D. | electronic order network |
| Answer» B. electronic dealer network | |
| 4. |
The funds which are used as an interest-bearing checking accounts are classified as |
| A. | money market funds |
| B. | capital market funds |
| C. | money mutual funds |
| D. | insurance money funds |
| Answer» B. capital market funds | |
| 5. |
The transfer through institutions such as mutual funds or banks are classified as |
| A. | non-financial intermediary |
| B. | financial intermediary |
| C. | savers intermediary |
| D. | discounted intermediary |
| Answer» C. savers intermediary | |
| 6. |
The profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on assets will be |
| A. | 0.2673 |
| B. | 26.73 times |
| C. | 0.094 |
| D. | 0.4 times |
| Answer» B. 26.73 times | |
| 7. |
The techniques which are used to identify financial statements trends include |
| A. | common size analysis |
| B. | percent change analysis |
| C. | returning ratios analysis |
| D. | both a and b |
| Answer» E. | |
| 8. |
The price per ratio is divided by cash flow per share ratio, is used for calculating |
| A. | dividend to stock ratio |
| B. | sales to growth ratio |
| C. | cash flow to price ratio |
| D. | price to cash flow ratio |
| Answer» E. | |
| 9. |
The price per share divided by earnings per share is the formula for calculating |
| A. | price earnings ratio |
| B. | earnings price ratio |
| C. | pricing ratio |
| D. | earnings ratio |
| Answer» B. earnings price ratio | |
| 10. |
The companies that help to set benchmarks are classified as |
| A. | competitive companies |
| B. | benchmark companies |
| C. | analytical companies |
| D. | return companies |
| Answer» C. analytical companies | |
| 11. |
A formula such as net income available to common stockholders divided by common equity is used to calculate |
| A. | return on earnings power |
| B. | return on investment |
| C. | return on common equity |
| D. | return on interest |
| Answer» D. return on interest | |
| 12. |
A company's low earnings power and high interest cost cause financial changes, which have |
| A. | high return on equity |
| B. | high return on assets |
| C. | low return on assets |
| D. | low return on equity |
| Answer» C. low return on assets | |
| 13. |
The price earnings ratio and price by cash flow ratio are classified as |
| A. | marginal ratios |
| B. | equity ratios |
| C. | return ratios |
| D. | market value ratios |
| Answer» E. | |
| 14. |
The return on assets = 5.5%, Total assets $3,000 and common equity is $1,050 then the return on equity would be |
| A. | 22275 |
| B. | 0.1571 |
| C. | 0.01925 |
| D. | 1.925 times |
| Answer» C. 0.01925 | |
| 15. |
The process of comparing company results with the other leading firms is considered as |
| A. | comparison |
| B. | analysis |
| C. | benchmarking |
| D. | return analysis |
| Answer» D. return analysis | |
| 16. |
The corporate associations who have common bonds being employees of the same firm are classified as |
| A. | credit unions |
| B. | debit unions |
| C. | preferred unions |
| D. | solving unions |
| Answer» B. debit unions | |
| 17. |
If the profit margin is equal to 4.5% and the total assets turnover is 1.8% then the return on assets DuPont equation would be |
| A. | 0.025 |
| B. | 0.081 |
| C. | 0.004 |
| D. | 4 times |
| Answer» C. 0.004 | |
| 18. |
The high price to earnings ratio shows companies |
| A. | low dividends paid |
| B. | high risk prospect |
| C. | high growth prospect |
| D. | high marginal rate |
| Answer» D. high marginal rate | |
| 19. |
The companies take savings as premium, invest in bonds and make payments to beneficiaries are classified as |
| A. | debit unions |
| B. | life insurance companies |
| C. | credit unions |
| D. | auto purchases |
| Answer» C. credit unions | |
| 20. |
The financial corporations which serve individual savers and commercial mortgage borrowers are classified as |
| A. | savings associations |
| B. | loans associations |
| C. | preferred and common associations |
| D. | savings and loans associations |
| Answer» E. | |
| 21. |
A regulatory body which licenses brokers and oversees traders is classified as |
| A. | international firm of auction system |
| B. | international association of network dealers |
| C. | national firm of equity dealers |
| D. | national association of securities dealers |
| Answer» E. | |
| 22. |
A company sells its stock shares for raising more equity capital is classified as |
| A. | dealer communication offering |
| B. | seasoned equity offering |
| C. | electronic equity offering |
| D. | electronic order offering |
| Answer» C. electronic equity offering | |
| 23. |
The type of financial security in which the loans are secured by borrowers property is classified as |
| A. | municipal bonds |
| B. | corporate bonds |
| C. | U.S treasury bonds |
| D. | mortgages |
| Answer» E. | |
| 24. |
The rate of return which is asked by the investors is classified as |
| A. | average cost of capital |
| B. | mean cost of capital |
| C. | weighted cost of capital |
| D. | weighted average cost of capital |
| Answer» E. | |
| 25. |
The trading place where the traders meet one another to communicate is classified as |
| A. | outcry auction system |
| B. | outcry system |
| C. | face to face communication |
| D. | money communication |
| Answer» B. outcry system | |
| 26. |
The type of financial securities that matures in less than a year are classified as |
| A. | money market securities |
| B. | capital market securities |
| C. | saving intermediaries |
| D. | discounted intermediaries |
| Answer» B. capital market securities | |
| 27. |
The characteristic of corporation that it can continue its work even the owners are decreased can be classified as |
| A. | limited life |
| B. | unlimited life |
| C. | corporate life |
| D. | deceased partnership |
| Answer» C. corporate life | |
| 28. |
The capital gain expected by stockholders and the dividends are included in |
| A. | debt rate |
| B. | investment return |
| C. | interest rate |
| D. | cost of equity |
| Answer» E. | |
| 29. |
The mutual fund allows investors to sale out their share during any normal trading hours is classified as |
| A. | exchange traded fund |
| B. | management expense |
| C. | money trade fund |
| D. | capital trade fund |
| Answer» B. management expense | |
| 30. |
The Hewlett-Packard and Microsoft are the examples of |
| A. | limited corporate business |
| B. | unlimited corporate business |
| C. | controlled corporate business |
| D. | corporation |
| Answer» E. | |
| 31. |
The government spending, if it exceeds federal government tax revenues then it is classified as |
| A. | federal reserve |
| B. | federal budget |
| C. | budget surplus |
| D. | budget deficit |
| Answer» E. | |
| 32. |
The collection of money from investors and spending the money in other investment activities is classified as |
| A. | future funds |
| B. | hedge funds |
| C. | retirement funds |
| D. | pension funds |
| Answer» C. retirement funds | |
| 33. |
The financial security with low degree risk and investment held by businesses is classified as |
| A. | treasury bills |
| B. | commercial paper |
| C. | negotiable certificate of deposit |
| D. | money market mutual funds |
| Answer» E. | |
| 34. |
The corporations that buy financial instruments with the money accepted from savers are classified as |
| A. | debit funds |
| B. | credit funds |
| C. | mutual funds |
| D. | insurance funds |
| Answer» D. insurance funds | |
| 35. |
An equation in which total assets are multiplied to profit margin is classified as |
| A. | du DuPont equation |
| B. | turnover equation |
| C. | preference equation |
| D. | common equation |
| Answer» B. turnover equation | |
| 36. |
The type of partnership in which the liabilities are limited for the business owners is classified as |
| A. | unlimited partnership |
| B. | limited partnership |
| C. | joint corporate |
| D. | joint venture |
| Answer» C. joint corporate | |
| 37. |
The legal entity separation from its legal owners and managers with the help of state laws is classified as |
| A. | controlled corporate business |
| B. | corporation |
| C. | limited corporate business |
| D. | unlimited corporate business |
| Answer» C. limited corporate business | |
| 38. |
In financial markets, the period of maturity more than five years of financial instruments is classified as |
| A. | intermediate term |
| B. | capital term |
| C. | short-term |
| D. | long-term |
| Answer» E. | |
| 39. |
The formula such as, net income available for common stockholders divided by total assets is used to calculate |
| A. | return on total assets |
| B. | return on total equity |
| C. | return on debt |
| D. | return on sales |
| Answer» B. return on total equity | |
| 40. |
The reduced consumer demand for loans, homes and new automobiles is the result of |
| A. | less disposable income |
| B. | high disposable income |
| C. | federal disposable income |
| D. | discount disposable income |
| Answer» B. high disposable income | |
| 41. |
The New York Stock Exchange and Nada stock market are classified as the types of |
| A. | primary stock market |
| B. | equity market |
| C. | secondary stock market |
| D. | public offering market |
| Answer» D. public offering market | |
| 42. |
The markets in which the outstanding securities are traded by investors are classified as |
| A. | primary markets |
| B. | secondary markets |
| C. | initial public offering market |
| D. | stock market |
| Answer» C. initial public offering market | |
| 43. |
The markets for the products such as wheat, rice, cotton, real estate and autos dealing is classified as |
| A. | physical asset markets |
| B. | intangible assets |
| C. | competitive markets |
| D. | easy markets |
| Answer» B. intangible assets | |
| 44. |
The members and employees of credit unions are loaned for |
| A. | mortgages |
| B. | home improvement loans |
| C. | auto purchases |
| D. | all of above |
| Answer» E. | |
| 45. |
The net income available to stockholders is $150 and total assets are $2,100 then return on total assets would be |
| A. | 0.0007 |
| B. | 0.0714 |
| C. | 0.05 times |
| D. | 7.15 times |
| Answer» C. 0.05 times | |
| 46. |
The conglomerates that combine many financial institutions within a single corporation are classified as |
| A. | preferred service corporations |
| B. | commercial service corporations |
| C. | financial services corporations |
| D. | common service corporations |
| Answer» D. common service corporations | |
| 47. |
The professionals such as doctors, accountants and lawyers often make corporations are classified as |
| A. | general professionals |
| B. | professional corporation |
| C. | professional association |
| D. | both b and c |
| Answer» E. | |
| 48. |
The financial security which is tax exempted and issues by state governments to individuals is classified as |
| A. | U.S treasury bonds |
| B. | mortgages |
| C. | municipal bonds |
| D. | corporate bonds |
| Answer» D. corporate bonds | |
| 49. |
The federal government tax revenues if it exceeds the government spending then it is classified as |
| A. | budget surplus |
| B. | budget deficit |
| C. | federal reserve |
| D. | federal budget |
| Answer» B. budget deficit | |
| 50. |
The return on assets is equal 6.7% and equity multiplier is equal to 2.5% then the return on equity will be |
| A. | 0.1675 |
| B. | 0.0268 |
| C. | 0.00373 |
| D. | 0.092 |
| Answer» B. 0.0268 | |