If you’re looking for assistance with financial management and preparing for accounting exams, Gurumcqs has over 2000 Finance MCQs with detailed explanations. The Finance MCQs section includes important questions related to financial management, financial accounting for finance and accounting Jobs, and Business Finance. These MCQs cover various topics such as Finance Basics, Time Value of Money, Future Value, Present Value, Future Annuity, Shares, Risk & Return, Capital Budgeting, General Financial Rules, Working Capital Management, financial accounting, and more. Additionally, you can also find software engineering MCQs questions and answers on the platform.

21. In financial markets, period of maturity less than one year of financial instruments is classified as________________?

A. Short-term
B. Long-term
C. Intermediate term

22. A markets which deals with long-term corporate stocks are classified as

A. Liquid markets
B. Short-term markets
C. Capital markets
D. Money markets

23. Bonds issued to individuals by corporations are classified as__________?

A. Municipal bonds
B. Corporate bonds
C. U.S treasury bonds
D. Mortgages

24. Markets dealing loans of autos, education, vacations and appliances are considered as__________?

A. Consumer credit loans
B. Commercial markets
C. Residential markets
D. Mortgage markets

25. Capital gain expected by stockholders and dividends are included in____________?

A. Debt rate
B. Investment return
C. Interest rate
D. Cost of equity

26. In weighted average cost of capital, rising in interest rate leads to_________________?

A. Increase in cost of debt
B. Increase capital structure
C. Decrease in cost of debt
D. Decrease capital structure

27. Forecast by analysts, retention growth model and historical growth rates are methods used for an______________?

A. Estimate future growth
B. Estimate option future value
C. Estimate option present value
D. Estimate growth ratio

28. An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?

A. Term structure
B. Market premium
C. Risk premium
D. Cost of debt

29. In weighted average cost of capital, capital components are funds that usually offer by____________?

A. Stock market
B. Investors
C. Capitalist
D. Exchange index

30. Capital budgeting decisions are analyzed with help of weighted average and for this purpose____________?

A. Component cost is used
B. Common stock value is used
C. Cost of capital is used
D. Asset valuation is used