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IRDAI Financial Management — practice questions

Explore 30 free Financial Management questions in IRDAI Finance. Open each question or exercise to read its content, reference answers and available explanation.

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Financial Management questions and exercises with answers

Showing questions 1–30 of 30.

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 →The rule that higher risk demands greater return is called the risk return:Read the answer and worked solution →Outlays supporting current production and selling are called:Read the answer and worked solution →Firms park surplus cash briefly in easily sold investments called:Read the answer and worked solution →Spending whose benefits last beyond one year is called a:Read the answer and worked solution →Besides buying long lived equipment, what else counts as a capital expenditure?Read the answer and worked solution →Managers seek the best balance between equity and:Read the answer and worked solution →Firms raise funds by borrowing, selling ownership shares and retaining:Read the answer and worked solution →A loan coming due within one year is classed as:Read the answer and worked solution →Unsecured short term loans come in three main types: bank loans, commercial paper and:Read the answer and worked solution →When a supplier lets a buyer pay after delivery, that is effectively a short term:Read the answer and worked solution →An agreed maximum a bank will lend a firm over a year is a:Read the answer and worked solution →A guaranteed line of credit that carries an extra fee is a revolving credit:Read the answer and worked solution →Commercial paper often carries an interest rate below bank rates by about:Read the answer and worked solution →Collateral for a secured short term loan is typically inventory or accounts:Read the answer and worked solution →Selling a firm's invoices to a third party for immediate cash is called:Read the answer and worked solution →Factoring costs more than a bank loan because invoices are bought at a:Read the answer and worked solution →Factoring is described as widely used in furniture, appliances and:Read the answer and worked solution →Trucking firms suit factoring because they hold many unpaid:Read the answer and worked solution →Catch the funding sourcesRead the answer and worked solution →Pop the unsecured loansRead the answer and worked solution →Run the finance gatesRead the answer and worked solution →Slice the finance wordsRead the answer and worked solution →Short term or long termRead the answer and worked solution →Sort the finance ideasRead the answer and worked solution →Type the numberRead the answer and worked solution →Financial management bingoRead 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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