Basic Finance MCQs

Ability to trade at net price very quickly is classified as:

A. Original trading
B. Liquidity
C. Offline trading
D. Fixed price trading

Type of financial security in which firms do not borrow money rather lease their assets is classified as:

A. Leases
B. Preferred stocks
C. Common stocks
D. Corporate stocks

Hewlett-Packard and Microsoft are examples of:

A. Limited corporate business
B. Unlimited corporate business
C. Controlled corporate business
D. Corporation

A price for equity is called:

A. Interest rate
B. Cost of equity
C. Debt rate
D. Investment return

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

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

As free bonds issue for welfare by industrial agencies or pollution control agencies are classified as:

A. Agent bonds
B. Development bonds
C. Pollution control bonds
D. Both B and C

Risk of fall in income due to fall in interest rates in future is classified as:

A. Income risk
B. Investment risk
C. Reinvestment risk
D. Mature risk

If coupon rate is equal to going rate of interest, then bond will be sold:

A. At par value
B. Below its par value
C. More than its par value
D. Seasoned par value

Long period of bond maturity leads to:

A. More price changes
B. Stable prices
C. Standing prices
D. Mature prices

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