This quiz works best with JavaScript enabled. Home > Management > Financial Management > Financial Management – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Management Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Short term unsecured promissory notes that is generally sold by large corporation on discount basis with the maturity period from 1 to 270 days. The statement is best described for ..... A) Bonds. B) Commercial paper. C) Preferred shares,. D) Common stocks. Show Answer Correct Answer: B) Commercial paper. 2. At its most basic level, the function of financial intermediaries is to ..... A) Track and report interest rates. B) Move money from lenders to borrowers and back again. C) Report all financial transactions to the federal government. D) Effect a transfer of wealth in society. Show Answer Correct Answer: B) Move money from lenders to borrowers and back again. 3. To develop a long term financial plan, the key aspects to be considered are A) Inflation rate. B) Interest rate. C) Personal health. D) All above. Show Answer Correct Answer: D) All above. 4. Under secondary market, sale of securities take place between A) (a) Company and Investors. B) (b) Company and Company. C) C) Investor and other investor. D) (d) None of the above. Show Answer Correct Answer: C) C) Investor and other investor. 5. James is a rational investor wishing to maximize his return over a 20-year period. The current yield curve is inverted with one-year rates at 5.00% and 20-year rates at 3.50%. James will invest in the lower-rate 20-year bonds if: A) He thinks rates will fall in the future and locking in long-term rates today may provide the highest long-run average return. B) He thinks rates will rise in the future and locking in long-term rates today may provide the lowest long-run average return. C) He thinks rates will remain flat at 5% in the future and locking in long-term rates today will prevent him from appearing greedy to those without this investment opportunity. D) He thinks rates will rise in the future and locking in long-term rates today may provide the highest long-run average return. Show Answer Correct Answer: A) He thinks rates will fall in the future and locking in long-term rates today may provide the highest long-run average return. 6. Petrol cost $ .10 per gallon in 1930. Over the next 60 years, the price rose at an average rate of 4.42% per year. Based on this information, what was the average price of a gallon of petrol in 1990? A) $ 2.75 per gallon. B) $ 1.53 per gallon. C) $ 2.65 per gallon. D) $ 1.34 per gallon. Show Answer Correct Answer: C) $ 2.65 per gallon. 7. It determines the economic worth in the exchange process. A) Money as a standard of value. B) Money as a medium of exchange. C) Money as a store of value. D) Money as a payment. Show Answer Correct Answer: A) Money as a standard of value. 8. Which of the following is/are the financial management process? A) Setting goals. B) Evaluating financial status. C) Creating financial and revising the progress. D) All the above. Show Answer Correct Answer: D) All the above. 9. Which is not a major decision in Financial Management A) Investment Decision. B) Operations Decision. C) Financing Decision. D) Dividend Decision. Show Answer Correct Answer: B) Operations Decision. 10. An advantage of a savings account is that it earns more interest than most checking accounts. A) False. B) True. Show Answer Correct Answer: B) True. 11. Taxes are fees that the government ..... people to pay in order to live and work in their state and the USA. A) Does not require. B) Requires. Show Answer Correct Answer: B) Requires. 12. The following are factors that may affect feasibility of a long-term financial plan except A) Government policy. B) Insurance. C) Interest rate. D) Inflation. Show Answer Correct Answer: B) Insurance. 13. RETURN ON INVESTMENT IS 15% AND RATE OF INTEREST IS 20%. DEBT WILL BE A) FAVOURABLE. B) UNFAVOURABLE. Show Answer Correct Answer: B) UNFAVOURABLE. 14. Conditions for accepting an investment A) IRR is greater than the reference rate. B) NPV Positif. C) Profitability Index is greater than 1. D) All previous answers are correct. Show Answer Correct Answer: D) All previous answers are correct. 15. How do you Manage School Finances Effectively? A) Monitor data, public policy, and legislation continuously. B) Create a strategic three-to-five-year plan. C) Minimize unnecessary administrative costs. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Credit card A) Short term debt. B) Long term debt. Show Answer Correct Answer: A) Short term debt. 17. Eddie buys new ear buds for $ 107.36, he gives the store clerk $ 120.00, what change should he get back? A) $ 11.64. B) $ 9.46. C) $ 12.64. D) $ 20.00. Show Answer Correct Answer: C) $ 12.64. 18. Tejado Supply has total equity of $ 1, 830, fixed assets of $ 2, 170, long-term debt of $ 740, and short-term debt of $ 430. What is the amount of Tejado's current assets? A) $ 660. B) $ 830. C) $ 400. D) None of above. Show Answer Correct Answer: B) $ 830. 19. ..... is the area of finance concerned with the activities of buying and selling financial assets such as stocks and bonds. A) Investments. B) Corporate finance. C) International finance. D) Financial markets and institutions. Show Answer Correct Answer: A) Investments. 20. Net Income approach proposes that there is a definite relationship between Capital Structure and ..... A) Value of the firm. B) Cost of Capital. C) Earnings. D) EBIT. Show Answer Correct Answer: A) Value of the firm. ← PreviousNext →Related QuizzesManagement QuizzesFinancial Management Quiz 1Financial Management Quiz 2Financial Management Quiz 3Financial Management Quiz 4Financial Management Quiz 5Financial Management Quiz 6Financial Management Quiz 7Financial Management Quiz 8Financial Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books