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

Financial management

Profit maximization

Agency theory

Social responsibility

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?

Operating environment

Financial environment

International environment

Regulatory environment

Correct! Wrong!

The purpose of financial markets is to?

Control inflation

Allocate savings efficiently

Lower the yield on bonds

Increase the price of common stocks

Correct! Wrong!

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

Primary market

Capital market

Money market

Secondary market

Correct! Wrong!

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

Have healthy cash flow

Maximize market share

Maximize the owners’ wealth

Increase sales and profit

Correct! Wrong!

Which of the following is a depository financial institution?

An investment bank

A finance company

A savings bank

A pension fund

Correct! Wrong!

What are the three interrelated areas of finance?

Banking, financial institutions and swap currency

Financial markets, option and forwards

Investment, Financial management and Financial market & Financial institution

All of given options

Correct! Wrong!

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

Promotion decisions

Investing decisions

HR decisions

Marketing decisions

Correct! Wrong!

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

Shareholder; bondholder

Manager; owner

Accountant; bondholder

Shareholder; manager

Correct! Wrong!

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

Financial management; Operations

Operational; Financial management

Financial management; Accounting

Accounting; Financial management

Correct! Wrong!

Which of the following statements always apply to corporations?

Limited liability

Limited life

Mix of ownership and control

Single taxation

Correct! Wrong!

The Financial institutions makes it easier to trade because it?

Channels Funds from Savers to Borrowers

Enables Risk Sharing

Facilitate Payments

All of the given options

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?

Financial Institutions

International financial organizations

Financial market organizations

Federal agencies

Correct! Wrong!

Financing decision determines?

Fix asset

Mix of finance

Current asset

Equity

Correct! Wrong!

Which of the following is a money market instrument?

Stocks

Corporate bonds

Treasury bill

Correct! Wrong!

Financial decisions are concerned with which of the following?

Raising capital that is needed for growth

All of given options

Making asset management decisions that optimize economic wealth

Making investment decisions that optimize economic value

Correct! Wrong!

Finance has its origins in?

Economics and statistics

Accounting and economics

Psychology and mathematics

Accounting and sociology

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?

It is primary market transaction

A futures market transaction

A money market transaction

A secondary market transaction

Correct! Wrong!

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

The minimization of the amount of taxes paid by the firm

The profits earned by the firm

The creation of value for shareholders

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

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!

Introduction to Finance

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Introduction to Finance MCQs

Learning Objectives

MCQs 1 to 20

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

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

The purpose of financial markets is to?

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

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

Which of the following is a depository financial institution?

What are the three interrelated areas of finance?

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

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

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

Which of the following statements always apply to corporations?

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?

Financing decision determines?

Which of the following is a money market instrument?

Financial decisions are concerned with which of the following?

Finance has its origins in?

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?

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

Finance is?

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References

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