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 beta coefficient indicates
A) Asset liquidity
B) Inflation sensitivity
C) Volatility relative to market
D) Dividend growth rate
Q: A financial derivative derives value from
A) Gold reserves
B) Asset depreciation
C) Future prices of underlying assets
D) Foreign currency
Q: Asset-backed securities are supported by
A) Company equity
B) Fixed deposits
C) Government grants
D) Pooled financial assets
Q: A decrease in net working capital implies
A) Improved liquidity
B) High leverage
C) Cash shortage
D) Reduced operating efficiency
Q: The interest rate charged by central banks to commercial banks is called
A) Prime rate
B) Capital rate
C) Repo rate
D) Real rate
Q: Cost of equity can be estimated using
A) Bond yield
B) Capital Asset Pricing Model
C) Debt-to-equity ratio
D) Risk-free rate only
Q: A treasury bill is issued for
A) Dividend payment
B) Inflation adjustment
C) Government short-term funding
D) Long-term borrowing
Q: The main purpose of credit rating is to
A) Calculate interest rates
B) Determine share value
C) Assess credit risk
D) Evaluate employees
Q: A hedge fund uses strategies like
A) Buy and hold
B) Leveraged and short positions
C) Passive indexing
D) Fixed interest investments
Q: A company with high operating leverage is sensitive to
A) Tax changes
B) Interest rate changes
C) Sales volume changes
D) Dividend fluctuation