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 price-to-earnings (P/E) ratio measures
A) Market expectation of earnings
B) Company liquidity
C) Investor return
D) Asset turnover
Q: Funds raised through debentures are classified as
A) Internal financing
B) Debt capital
C) Revenue reserve
D) Equity capital
Q: An increase in equity financing typically leads to
A) Higher fixed costs
B) Reduced financial risk
C) Higher leverage
D) Increase in interest expense
Q: The dividend payout ratio is calculated as
A) Retained earnings ÷ Net income
B) Dividends ÷ Equity
C) Net income ÷ Revenue
D) Dividends ÷ Net income
Q: A mutual fund pools money to
A) Invest in diversified securities
B) Issue currency
C) Lend to individuals
D) Finance government spending