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: An increase in working capital usually indicates
A) Increase in liabilities
B) Higher short-term liquidity
C) Lower profits
D) Decline in operations
Q: A company issues shares to
A) Reduce equity
B) Avoid taxation
C) Raise capital
D) Increase liabilities
Q: High inventory turnover means
A) Inefficient stock control
B) High storage cost
C) Fast-moving inventory
D) Excessive inventory
Q: A credit rating evaluates
A) Profit margin
B) Tax compliance
C) Stock price
D) Creditworthiness
Q: The CAPM model is used to
A) Calculate liquidity
B) Determine required return
C) Predict inflation
D) Assess interest rates
Q: The term arbitrage refers to
A) Inflation control
B) Interest rate fluctuations
C) Portfolio balancing
D) Risk-free profits from price differences
Q: An overdraft facility allows
A) Short-term borrowing over account balance
B) Increase in capital
C) Unlimited borrowing
D) Tax exemption
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
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
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