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 Sharpe ratio is used to evaluate
A) Creditworthiness
B) Absolute returns
C) Return per unit of risk
D) Liquidity position
Q: An efficient portfolio lies on the
A) Security market line
B) Capital market line
C) Efficient frontier
D) Budget line
Q: Leverage affects
A) Inflation
B) Market size
C) Profit sensitivity
D) Interest rates
Q: The function of the secondary market is to
A) Facilitate trading of existing securities
B) Control inflation
C) Determine tax rates
D) Raise new capital
Q: The financial instrument with fixed maturity and regular interest is a
A) Bond
B) Warrant
C) Option
D) Share