Finance Quiz

1. Which from the following is NOT an example of intangible assets?
(A) Trademarks
(B) Patents
(C) Buildings
(D) Technical expertise

2. The following are the examples of financial assets except?
(A) Stocks
(B) Bank Loan
(C) Bond
(D) Raw material

3. The following are important functions of financial markets:
I. Source of financing
II. Provide liquidity
III. Reduce risk
IV. Source of information
(A) I and IV only
(B) II and III only
(C) I, II and III only
(D) I, II, III and IV

4. The sale of financial assets is also referred to as the
(A) Capital decision
(B) CFO decision
(C) Financing decision
(D) Investment decision

5. The construction of new manufacturing plant is also referred to as the
(A) Capital decision
(B) CFO decision
(C) Financing decision
(D) Investment decision

6. According to the Efficient Market Hypothesis, which from the following is NOT true?
(A) Analysis predicts price pattern
(B) No money machines
(C) No arbitrage opportunities
(D) Security prices reflect true underlying value of assets

7. According to the weak form of market efficiency __________ past information is included in the stock price.
(A) no
(B) all
(C) marginal
(D) only a few

8. We say about a particular investment that it is risky, because
(A) it is dangerous
(B) it has low returns
(C) its returns are uncertain
(D) its raw material is unavailable

9. In Finance, risk is calculated by calculating the
(A) mean
(B) variance
(C) standard deviation
(D) kurtosis

10. The sale of bonds by a country or a corporation is referred to as the
(A) Investment decision
(B) financing decision
(C) offering loan
(D) capital structure

ANSWERS: FINANCE QUIZ
1. C
2. D
3. D
4. C
5. D
6. A
7. B
8. C
9. C
10. B
Finance Quiz (11 — 20)