FINANCIAL MANAGEMENT – MODEL QUESTIONS SUBJECT CODE: MB0045 BOOK ID: (B1134) SECOND SEMESTER SECTION A - 1 MARK
1. Goal of financial management is ………..of economic welfare A. Nationalization B. Maximization C. Minimization D. Normalization 2. The core of modern financial management is procurement of least cost funds and its effective utilization. It is more____________ in nature: A. Geometrical B. Analytical C. Practical D. Theoretical 3. Investment decision is also known as A. Capital decision B. Profit decision C. Capital budgeting decision D. Working capital decision 4. Rate of return required by investor is normally known as: A. Coupon rate B. Market rate C. Hurdle rate D. Risk-free rate 5. Long term external borrowings are known as A. Winning capital B. Share capital C. Working capital D. Debt capital 6. Time value of money is also known as……………….. of money A. Time preference B. Time difference C. Time occurrence

D. None 7. Time value of money is generally expressed as: A. Dividend rate B. Profitable rate C. Sales rate D. Interest rate 8. Calculation of principal amount and compound interest is A. P (l + r)٨n B. P (I + r ) C. P (l - r) D. I + r/p 9. Formula to calculate future value is. A. PV I+ r B. PV( l +r ) C. PV ( l -r) D. PV ( l + r)٨n 10. Doubling period concept refers to. A. Time Period B. Conversion period C. Money period D. Convenient period 11. If the rate of interest is 5 %, the Rule 72 is applied as. A. 72/5 B. 5/72 C. 72*5 D. None 12. The ………. of PV annuity factor is called capital recovery factor A. Reciprocal B. Double C. Triple D. None 13. A rupee received today has ………value than received a year later A. Constant B. Less C. More D. None

14. Ordinary shares are known as: A. Equity B. Preference C. Private equity D. Preferential allotment 15. Assets are recorded at ……….cost A. Future B. Present C. Historical D. Temporal 16. Zero coupon