Finance MCQs
Finance MCQs cover financial management, investment analysis, markets, and corporate finance. Ideal for MBA, CFA, and competitive exams like PPSC, FPSC, NTS, and SBP, they build concepts, analytical skills, speed, and accuracy through real-world scenarios.
Q: The concept of annuity involves
A) Non-cash expenses
B) Single lump sum
C) Equal periodic payments
D) Variable payments
✅ Correct Answer: C
Explanation: Annuities consist of equal payments made at regular intervals over time.
Q: EBITDA excludes
A) Depreciation and amortization
B) Interest income only
C) Taxes only
D) Operating revenue
✅ Correct Answer: A
Explanation: EBITDA focuses on operational earnings before interest, tax, depreciation, and amortization.
Q: Dividend yield is calculated by
A) Share price ÷ Dividend
B) Dividend ÷ Share price
C) Earnings ÷ Share price
D) Dividend ÷ Earnings
✅ Correct Answer: B
Explanation: Dividend yield measures the return in dividends relative to the share price.
Q: The foreign exchange market determines
A) Currency values
B) Export duties
C) Tax rates
D) Government budgets
✅ Correct Answer: A
Explanation: Forex markets set the relative value of currencies based on supply and demand.
Q: A forward contract is
A) Traded on exchange
B) Risk-free
C) Standardized
D) Customizable and private
✅ Correct Answer: D
Explanation: Forward contracts are over-the-counter agreements tailored to individual needs.