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IRDAI — free MCQ practice

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Finance (30)

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Financial managers concentrate on the inflows and outflows of cash, known as:Read the answer and worked solution →The value of a publicly owned corporation is measured by its:Read the answer and worked solution →In finance, the opportunity for profit is called:Read the answer and worked solution →The chance an investment falls short of its expected return is called:Read the answer and worked solution →

Worked practice questions

Financial managers concentrate on the inflows and outflows of cash, known as:

  1. Cash flows
  2. Cash ledgers
  3. Cash counters
  4. Cash caskets
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Correct answer: A. Cash flows

1. Money comes in and goes out constantly. 2. Managers watch both directions. 3. Those are cash flows. _Source: OpenStax Introduction to Business, Chapter 16, Understanding Financial Management and Securities Markets._

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The value of a publicly owned corporation is measured by its:

  1. Shop front
  2. Share price
  3. Shelf space
  4. Ship count
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Correct answer: B. Share price

1. The market prices the whole company. 2. That price attaches to each share. 3. So it is the share price. _Source: OpenStax Introduction to Business, Chapter 16, Understanding Financial Management and Securities Markets._

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In finance, the opportunity for profit is called:

  1. Return
  2. Retainer
  3. Retreat
  4. Revival
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Correct answer: A. Return

1. It is the upside of an investment. 2. Its opposite is risk. 3. That upside is the return. _Source: OpenStax Introduction to Business, Chapter 16, Understanding Financial Management and Securities Markets._

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