This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A ..... is a broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives ..... are typically defined by having transparent pricing, basic regulations on trading, costs and fees, and market forces determining the prices of securities that trade. A) Market. B) Bank. C) Financial Market. D) Public Market. Show Answer Correct Answer: C) Financial Market. 2. Lease A) Contract to buy something. B) Contract to rent something. C) Bill of sale. D) Receipt. Show Answer Correct Answer: B) Contract to rent something. 3. Keeping in view the high rate of Income Tax the company should give priority to ..... capital. A) Debt. B) Equity. C) Preference. D) Owner. Show Answer Correct Answer: A) Debt. 4. Variable cost in an organization A) Be fixed according to the rate of growth. B) Changes with the volume of production. C) Does not change with volume of production. D) Remains constant. Show Answer Correct Answer: B) Changes with the volume of production. 5. The bank provides funds to their customers by purchasing or discounting bills of exchange. A) Overdraft. B) Cash credit. C) Bills of exchange. D) None of above. Show Answer Correct Answer: C) Bills of exchange. 6. What is the compound value if you invest Rs. 1, 000 at 10% for 3 years? A) Rs. 1, 331. B) Rs. 133.1. C) Rs. 13.31. D) Rs. 1.331. Show Answer Correct Answer: A) Rs. 1, 331. 7. TVM stands for what? A) Total Valuable of Money. B) Time Value of Money. C) Total Value of Management. D) Time Valuable of Management. Show Answer Correct Answer: B) Time Value of Money. 8. Which personal finance concept is correct? A) Do budgeting for expenses and income. B) Carry out proportional budgeting for Social, Investment, Installment & Operational posts. C) Carry out budgeting in managing investments to support debt repayments. D) Increase your social posts compared to your existing income each month. E) Money is everything ~ No Money No Party. Show Answer Correct Answer: B) Carry out proportional budgeting for Social, Investment, Installment & Operational posts. 9. Why should you keep bank records up to date A) Tax purposes. B) You shouldn't. C) So you could see your financial progress. D) Grandpa Morris says so. E) So you have an understanding of the financial system. Show Answer Correct Answer: A) Tax purposes. 10. The basic objective of finance manager is A) Maximising business's profit. B) Maximising size of organization. C) Maximising wealth of organization. D) All of the above. Show Answer Correct Answer: C) Maximising wealth of organization. 11. ..... is financial institution. A) SEBI. B) Commercial bank. C) LIC. D) RBI. Show Answer Correct Answer: B) Commercial bank. 12. Which of the following is a long-term financial goal? A) Buy a house. B) Invest shares in Bursa Malaysia. C) Buy the latest model of Apple smart phone. D) Vacation in other country for 10 days. Show Answer Correct Answer: A) Buy a house. 13. This is one part of the Definition of Financial Reports, except: A) The final result of the accounting cycle. B) This is future information. C) This is historical information. D) Recorded in cash value. Show Answer Correct Answer: B) This is future information. 14. What type of loan requires both principal and interest payments as you go by making equal payments each period? A) Amortized loan. B) Interest-only loan. C) Discount loan. D) Compound loan. Show Answer Correct Answer: A) Amortized loan. 15. Putting Money Away for Later * A) Savings. B) Net Pay. C) Loan. D) Interest. Show Answer Correct Answer: A) Savings. 16. Which of the following is an advantage of preference shares? A) Long-term sources. B) Fixed rate of interest. C) Trade on equity. D) Redemptions. Show Answer Correct Answer: D) Redemptions. 17. In the share market, the market value of any share is decided by: A) Shareholders. B) The government. C) Investment market. D) The respective companies. Show Answer Correct Answer: C) Investment market. 18. Which is greater, the present value of a $ 1, 000 five-year ordinary annuity discounted at 10%, or the present value of a $ 1, 000 five-year annuity due discounted at 10%? A) The ordinary annuity is worth more with a present value of $ 3, 790.79. B) The annuity due is worth more with a past value of $ 4, 169.87. C) The ordinary annuity is worth more with a present value of $ 4, 169.87. D) The annuity due is worth more with a present value of $ 4, 169.87. Show Answer Correct Answer: D) The annuity due is worth more with a present value of $ 4, 169.87. 19. Doing this means my money is gone for good. I won't get it back. A) Spending. B) Saving. C) Earning. D) Investing. Show Answer Correct Answer: A) Spending. 20. ROI is 9.65% and prevailing interest rate is 11%. The company is planning to raise funds through issue of debentures. The company ..... issue debentures. A) Should not. B) Should. C) Both the above are correct. D) None of the above. Show Answer Correct Answer: A) Should not. ← PreviousNext →Related QuizzesManagement QuizzesFinancial Management Quiz 1Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9Financial Management Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books