Finance Multiple Choice Questions

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61. The success of a new company critically depends on
(A) managers
(B) board of directors
(C) shareholders
(D) venture capitalists

62. Companies go public in order to
(A) avoid taxes
(B) reduce management cost
(C) raise more cash
(D) get merge

63. Companies go public with the help of
(A) venture capital firms
(B) underwriters
(C) shareholders
(D) A, B and C

64. If beta of a stock is __________ then it tends to amplify the overall market movement.
(A) 0
(B) 1
(C) greater than 1
(D) between 0 and 1

65. What is the real rate of interest if nominal rate is 10% and inflation rate is 5%?
(A) 4.3%
(B) 4.8%
(C) 5.3%
(D) 5.8%

66. The relationship between short and long term interest rates is called __________ of interest rates.
(A) yield to maturity
(B) duration
(C) volatility
(D) term structure

67. Financial managers are interested in __________ when see bond market.
(A) yield to maturity
(B) duration
(C) volatility
(D) term structure

68. Underwriters are also called
(A) bookrunner
(B) venture capitalists
(C) subscribers
(D) angel investors

69. Which from the following is not the role of an underwriter?
(A) They provide procedural and financial advice
(B) They buy the issue
(C) They resell the issue to the public
(D) They provide funds to the corporation

70. Risk __________ with the duration of bond.
(A) remains same
(B) increases
(C) decreases
(D) multiplied

ANSWERS: FINANCE MULTIPLE CHOICE QUESTIONS
61. A
62. C
63. B
64. C
65. B
66. D
67. A
68. A
69. D
70. B

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