Finance Basics MCQs (1-10)

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

(a) Money market

(b) Capital market

(c) Primary market

(d) Secondary market

Correct! Wrong!

2. Which one of the following can issue the corporate bond?

(a) Individuals

(b) Government

(c) Public limited companies

(d) All of before

Correct! Wrong!

3. Which is the treasurer’s responsibility for managing the firm’s cash and marketable securities?

(a) Planning its capital structure

(b) Overseeing the corporate pension fund

(c) Selling stocks and bonds to raise capital

(d) All of the above

Correct! Wrong!

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

(a) Investing decisions

(b) Marketing decisions

(c) Promotion decisions

(d) Non of Above

Correct! Wrong!

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

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

(b) The creation of value for shareholders

(c) The minimization of the amount of taxes paid by the firm

(d) The profits earned by the firm

Correct! Wrong!

6. Financing decision determines?

(a) Current asset

(b) Fix asset

(c) Equity

(d) Mix of finance

Correct! Wrong!

7. Profit maximization is a?

(a) Long term concept

(b) Short term concept

(c) Both a & b

(d) None

Correct! Wrong!

8. What are the three interrelated areas of finance?

(a) Financial markets, option and forwards

(b) Banking, financial institutions and swap currency

(c) Investment, Financial management and Financial market & Financial institution

(d) All of above

Correct! Wrong!

9. Which of the following is not normally a responsibility of the controller of the modern corporation?

(a) Budgets and forecasts

(b) Asset management

(c) Financial reporting

(d) Cost accounting

Correct! Wrong!

10. Financial decisions are concerned with which of the following?

(a) Making investment decisions that optimize economic value

(b) Making asset management decisions that optimize economic wealth

(c) Raising capital that is needed for growth

(d) All of the above

Correct! Wrong!

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

2. Which one of the following can issue the corporate bond?

3. Which is the treasurer’s responsibility for managing the firm’s cash and marketable securities?

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

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

6. Financing decision determines?

7. Profit maximization is a?

8. What are the three interrelated areas of finance?

9. Which of the following is not normally a responsibility of the controller of the modern corporation?

10. Financial decisions are concerned with which of the following?

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