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 term arbitrage refers to
A) Inflation control
B) Interest rate fluctuations
C) Portfolio balancing
D) Risk-free profits from price differences
✅ Correct Answer: D
Explanation: Arbitrage exploits price differences of the same asset across markets for profit.
Q: An overdraft facility allows
A) Short-term borrowing over account balance
B) Increase in capital
C) Unlimited borrowing
D) Tax exemption
✅ Correct Answer: A
Explanation: Overdrafts allow account holders to withdraw more than the available balance within limits.
Q: Net present value (NPV) represents
A) Interest income
B) Value addition from an investment
C) Time value of future costs
D) Profit after tax
✅ Correct Answer: B
Explanation: NPV shows the added value from an investment after discounting future cash flows.
Q: A bond's face value is
A) Its original issue price
B) The amount repaid at maturity
C) Its market value
D) The coupon rate
✅ Correct Answer: B
Explanation: Face value is the amount the issuer repays to bondholders at maturity.
Q: The role of a venture capitalist is to
A) Fund high-risk startups
B) Provide loans to governments
C) Invest in bonds
D) Finance mature companies
✅ Correct Answer: A
Explanation: Venture capitalists invest in early-stage firms with high growth potential and risk.