Introduction to Finance MCQs

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Learning Objectives

After practice this MCQs set, you should be able to:

MCQs 1 to 20

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Finance has its origins in?

Economics and statistics

Accounting and economics

Accounting and sociology

Psychology and mathematics

Correct! Wrong!

Finance is?

None of the above

The study of how governments and businesses acquire, spend, and manage money and other financial assets

The study of how individuals, institutions, governments, and businesses acquire, spend, and manage money and other financial assets

The study of how businesses acquire, spend, and manage money and other financial assets

Correct! Wrong!

Which of the following is a money market instrument?

Corporate bonds

Stocks

Treasury bill

Correct! Wrong!

The ______________ is a term used to describe the financial system, institutions, markets, businesses, individuals, and global interactions that help the economy operate efficiently?

Regulatory environment

Financial environment

International environment

Operating environment

Correct! Wrong!

Among the pairs given below select a (n) example of a principal and a (n) example of an agent respectively?

Shareholder; bondholder

Accountant; bondholder

Shareholder; manager

Manager; owner

Correct! Wrong!

Which of the following statements always apply to corporations?

Single taxation

Mix of ownership and control

Limited life

Limited liability

Correct! Wrong!

Which of the following is the activity in which finance people are involved?

Investing decisions

Marketing decisions

HR decisions

Promotion decisions

Correct! Wrong!

In finance, we refer to the market where new securities are bought and sold for the first time?

Secondary market

Money market

Primary market

Capital market

Correct! Wrong!

Financing decision determines?

Fix asset

Mix of finance

Current asset

Equity

Correct! Wrong!

The primary goal of the financial manager of a profit-seeking organization is to?

Maximize market share

Have healthy cash flow

Maximize the owners’ wealth

Increase sales and profit

Correct! Wrong!

What should be the long term focal point of financial management in a firm?

The number and types of products or services provided by the firm

The creation of value for shareholders

The minimization of the amount of taxes paid by the firm

The profits earned by the firm

Correct! Wrong!

Financial decisions are concerned with which of the following?

Making investment decisions that optimize economic value

All of given options

Raising capital that is needed for growth

Making asset management decisions that optimize economic wealth

Correct! Wrong!

Which of the following is a depository financial institution?

A pension fund

A savings bank

An investment bank

A finance company

Correct! Wrong!

The Financial institutions makes it easier to trade because it?

Channels Funds from Savers to Borrowers

All of the given options

Enables Risk Sharing

Facilitate Payments

Correct! Wrong!

___________________ are intermediaries, such as banks, insurance companies, and investment companies that engage in financial activities to aid the flow of funds from savers to borrowers or investors?

International financial organizations

Financial market organizations

Financial Institutions

Federal agencies

Correct! Wrong!

The controller’s responsibilities are primarily in nature, while the treasurer's responsibilities are primarily related to?

Financial management; Accounting

Accounting; Financial management

Financial management; Operations

Operational; Financial management

Correct! Wrong!

What are the three interrelated areas of finance?

Investment, Financial management and Financial market & Financial institution

Banking, financial institutions and swap currency

All of given options

Financial markets, option and forwards

Correct! Wrong!

If an investor were to sell 100 shares of Microsoft stock to another investor in the securities market, this would be referred to as what type of transaction?

A secondary market transaction

A futures market transaction

It is primary market transaction

A money market transaction

Correct! Wrong!

The purpose of financial markets is to?

Allocate savings efficiently

Increase the price of common stocks

Control inflation

Lower the yield on bonds

Correct! Wrong!

__________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind?

Profit maximization

Agency theory

Financial management

Social responsibility

Correct! Wrong!

Introduction to Finance

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Introduction to Finance MCQs

Learning Objectives

MCQs 1 to 20

Finance has its origins in?

Finance is?

Which of the following is a money market instrument?

The ______________ is a term used to describe the financial system, institutions, markets, businesses, individuals, and global interactions that help the economy operate efficiently?

Among the pairs given below select a (n) example of a principal and a (n) example of an agent respectively?

Which of the following statements always apply to corporations?

Which of the following is the activity in which finance people are involved?

In finance, we refer to the market where new securities are bought and sold for the first time?

Financing decision determines?

The primary goal of the financial manager of a profit-seeking organization is to?

What should be the long term focal point of financial management in a firm?

Financial decisions are concerned with which of the following?

Which of the following is a depository financial institution?

The Financial institutions makes it easier to trade because it?

___________________ are intermediaries, such as banks, insurance companies, and investment companies that engage in financial activities to aid the flow of funds from savers to borrowers or investors?

The controller’s responsibilities are primarily in nature, while the treasurer's responsibilities are primarily related to?

What are the three interrelated areas of finance?

If an investor were to sell 100 shares of Microsoft stock to another investor in the securities market, this would be referred to as what type of transaction?

The purpose of financial markets is to?

__________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind?

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References

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