This quiz works best with JavaScript enabled. Home > Finance > Management > Financial Management > Financial Management – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 63 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Of the following, which is NOT an example of a financial intermediary? A) Commercial bank. B) Insurance company. C) Investment bank. D) All of the above are financial intermediaries. Show Answer Correct Answer: D) All of the above are financial intermediaries. 2. There are several discounted cash flow models, except ..... A) The Constant-Growth Dividend Discount Model. B) Capital Asset Pricing Model. C) The Two-Stage Growth Model. D) The Free Cash Flow Model. Show Answer Correct Answer: B) Capital Asset Pricing Model. 3. A company receives a perpetuity of $ 20, 000 per annum in arrears, and pays 30% corporation tax 12 months after the end of the year to which the cash flows relate. At a cost of capital of 10%, what is the after-tax present value of the perpetuity? A) $ 140, 000. B) $ 127, 274. C) $ 144, 000. D) $ 145, 454. Show Answer Correct Answer: D) $ 145, 454. 4. Debit cards require using this to access the account to perform transactions. A) PIN. B) Check. C) ATM. D) Credit Card. Show Answer Correct Answer: A) PIN. 5. Fixed capital is less required in which concern? A) Service provider. B) Manufacturer. C) Capital intensive. D) None of these. Show Answer Correct Answer: A) Service provider. 6. Q4) In financial planning, what is the first step to undertake? A) Investing all available funds. B) Setting a single long-term goal. C) Determining one's risk tolerance. D) Establishing clear financial goals. Show Answer Correct Answer: D) Establishing clear financial goals. 7. The financial objectives in terms of decision criteria may be: A) Any of these. B) Profit maximization. C) Wealth maximization. D) Welfare maximization. Show Answer Correct Answer: A) Any of these. 8. Which of the following statements are correct?(1) A certificate of deposit is an example of a money market instrument(2) Money market deposits are short-term loans between organisations such as banks(3) Treasury bills are bought and sold on a discount basis A) 1 and 2 only. B) 1 and 3 only. C) 2 and 3 only. D) 1, 2 and 3. Show Answer Correct Answer: D) 1, 2 and 3. 9. The finance manager's role is to: A) Effective supervision of capital. B) Maintains the financial health. C) Ensures that the funds are properly utilized. D) Obtains capital assets of the organization. Show Answer Correct Answer: B) Maintains the financial health. 10. Victor wants to save $ 100 dollars over the next 4 months. How much money does he need to save per month in order to have $ 100? A) $ 25. B) $ 50. C) $ 100. D) $ 20. Show Answer Correct Answer: A) $ 25. 11. The cost of raising finance is A) Promotion cost. B) Floatation cost. C) Venture cost. D) Sinking cost. Show Answer Correct Answer: B) Floatation cost. 12. Which of the following is not a key aspect of financial management? A) Financial planning and budgeting. B) Capital budgeting. C) Risk management. D) Financial analysis and reporting. E) Marketing. Show Answer Correct Answer: E) Marketing. 13. What does the "S" mean in SMART goals? A) Smart. B) Simple. C) Strong. D) Super. E) Specific. Show Answer Correct Answer: E) Specific. 14. Which of the following is the process of deciding where to put your money to work in the market? For example, the 2065 fund A) Retirement strategies. B) Asset Allocation. C) Benefit retirement plan. D) Tax implications. E) Stock investing. Show Answer Correct Answer: B) Asset Allocation. 15. What is the Use of Financial Reports? A) As a form of responsibility to customers. B) As controlling marketing division expenses. C) As a hobby in my spare time. D) As a parameter of the good and bad conditions of our business. E) As job description for finance and production. Show Answer Correct Answer: D) As a parameter of the good and bad conditions of our business. 16. Which of the following actions will DECREASE the present value of an investment? A) Decrease the interest rate. B) Decrease the future value. C) Decrease the amount of time. D) All of the above will decrease the present value. Show Answer Correct Answer: B) Decrease the future value. 17. Worldwide trade is A) Buying goods from abroad. B) Selling goods to abroad. C) Paying foreign currency. D) All of above. Show Answer Correct Answer: D) All of above. 18. What is emergency savings? A) Transferring money into your savings before you pay your bills. B) Cash set aside to cover the cost of unexpected events. C) Maximizing your return by selling stocks at a higher price than what you paid for. D) Original amount of money saved or invested. Show Answer Correct Answer: B) Cash set aside to cover the cost of unexpected events. 19. If for the next 40 years you place $ 3, 000 in equal year-end-deposits into an account earning 8% per year, how much money will be in the account at the end of that time period? A) $ 777, 169.56. B) $ 777, 159.56. C) $ 777, 189.56. D) $ 777, 179.56. Show Answer Correct Answer: A) $ 777, 169.56. 20. What can be done to manage savings effectively, according to the tips listed? A) Ignoring long-term savings. B) Withdraw all savings for investment. C) Manage savings allocation for immediate and future needs. D) Not monitoring savings balances regularly. Show Answer Correct Answer: C) Manage savings allocation for immediate and future needs. 21. IF RETURN ON INVESTMENT IS MORE THAN RATE OF INTEREST ..... IS FAVOURABLE A) DEBT. B) EQUITY. C) BOTH. D) NONE. Show Answer Correct Answer: A) DEBT. 22. The percentage deducted from an individual's paycheck to assist in funding government agencies within the state. A) State Withholding Tax. B) Federal Withholding Tax. C) Debits. D) Interest. Show Answer Correct Answer: A) State Withholding Tax. 23. Short term or current assets Decisions are known as: A) Short term investment decisions. B) Working capital decisions. C) Both. D) None. Show Answer Correct Answer: C) Both. 24. The users that look for signals from management are: A) Signalling theory. B) Traditonal Approach. C) Agency theory. D) None. Show Answer Correct Answer: A) Signalling theory. 25. MM approach adds behavioral justification to NOI approach through ..... A) Operation Leverage. B) Personal Leverage. C) Corporate Leverage. D) Financial Leverage. Show Answer Correct Answer: B) Personal Leverage. 26. Bond by the name of the owner of the issuing company is? A) Debenture. B) Mortgage. C) Registered. D) Convertible. Show Answer Correct Answer: C) Registered. 27. Financing decisions is related to A) Dividend distribution. B) Capital structure. C) Maintenance of accounts. D) Purchasing of fixed assets. Show Answer Correct Answer: A) Dividend distribution. 28. Functions of managerial finance are A) Planning for investments. B) Raising of funds. C) Working capital decisions. D) All the above. Show Answer Correct Answer: D) All the above. 29. Which type of income is the income after taxes are taken out? A) Net income. B) Accounted income. C) Generated Income. D) Gross income. E) Taxable Income. Show Answer Correct Answer: A) Net income. 30. The ..... offers free file software for individuals who have an income below $ 62, 000. A) Schools. B) IRS. C) Employer. D) None of above. Show Answer Correct Answer: B) IRS. ← PreviousNext →Related QuizzesManagement QuizzesFinance QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books