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 cost of retained earnings is considered
A) Opportunity cost
B) Zero
C) Equal to debt cost
D) Higher than equity
Q: A company’s financial leverage increases with
A) More reserves
B) More fixed assets
C) More debt
D) More equity
Q: The interest coverage ratio is calculated as
A) EBIT ÷ Interest expense
B) Revenue ÷ Interest income
C) Net income ÷ Liabilities
D) Assets ÷ Interest
Q: A tax shield results from
A) Increased sales
B) Equity dilution
C) Depreciation or interest deductions
D) Foreign investments
Q: Market efficiency suggests that
A) All information is reflected in prices
B) Prices are random
C) Government controls markets
D) Prices lag behind information