Start learning →

MBA Finance Corporate Finance — practice questions — page 2

Explore 143 free Corporate Finance questions in MBA Finance Financial Management. Open each question or exercise to read its content, reference answers and available explanation.

Practise Corporate Finance with Quill →

Corporate Finance questions and exercises with answers

Showing questions 31–60 of 143.

A financial market links savers and investors, performing what is known as its:Read the answer and worked solution →The process by which allocation of funds is done through banks or markets is called:Read the answer and worked solution →Which is one of the four functions of a financial market?Read the answer and worked solution →By making financial assets easy to buy and sell, markets provide:Read the answer and worked solution →Financial markets are classified on the basis of the:Read the answer and worked solution →Instruments with a maturity of less than one year are traded in the:Read the answer and worked solution →The money market has:Read the answer and worked solution →Which is a major participant in the money market?Read the answer and worked solution →A Treasury bill is an instrument of short-term borrowing by the:Read the answer and worked solution →Treasury bills are also known as:Read the answer and worked solution →A 91-day Treasury bill of face value 1,00,000 bought for 96,000 earns the investor:Read the answer and worked solution →The difference between the issue price of a treasury bill and its redemption value is called:Read the answer and worked solution →Treasury bills are available for a minimum amount of:Read the answer and worked solution →A short-term unsecured promissory note issued by large creditworthy companies is:Read the answer and worked solution →Using funds raised through commercial paper to meet floatation costs of a bigger issue is called:Read the answer and worked solution →Short-term finance repayable on demand, with maturity of one day to fifteen days, used between banks, is:Read the answer and worked solution →The interest rate paid on call money loans is known as the:Read the answer and worked solution →Unsecured, negotiable, short-term bearer instruments issued by commercial banks are:Read the answer and worked solution →A bill of exchange used to finance credit sales, drawn by the seller and accepted by the buyer, becomes a:Read the answer and worked solution →A trade bill accepted by a commercial bank is known as a:Read the answer and worked solution →Facilities and institutional arrangements through which long-term funds are raised form the:Read the answer and worked solution →The SENSEX, the benchmark index of the BSE, is made up of how many actively traded stocks?Read the answer and worked solution →Catch the money market toolsRead the answer and worked solution →Pop the market functionsRead the answer and worked solution →Run the market numbersRead the answer and worked solution →Slice the market wordsRead the answer and worked solution →Money or capital marketRead the answer and worked solution →Sort instrument, issuer and termRead the answer and worked solution →Type the numberRead the answer and worked solution →Financial markets bingoRead the answer and worked solution →

Worked practice questions

A financial market links savers and investors, performing what is known as its:

  1. Allocative function
  2. Executive function
  3. Legislative function
  4. Protective function
Show answer and solution

Correct answer: A. Allocative function

1. Funds move to their most productive use. 2. Households save and firms invest. 3. That is the allocative function. _Source: syllabus Business Studies Part II, Chapter 10, Financial Markets._

Open this question →

The process by which allocation of funds is done through banks or markets is called:

  1. Financial arbitration
  2. Financial intermediation
  3. Financial speculation
  4. Financial liquidation
Show answer and solution

Correct answer: B. Financial intermediation

1. Banks and markets compete for savings. 2. Both channel funds to firms. 3. That process is financial intermediation. _Source: syllabus Business Studies Part II, Chapter 10, Financial Markets._

Open this question →

Which is one of the four functions of a financial market?

  1. Facilitating price discovery
  2. Fixing the annual budget
  3. Printing the currency notes
  4. Collecting the income tax
Show answer and solution

Correct answer: A. Facilitating price discovery

1. Demand and supply meet in the market. 2. A price for the asset emerges. 3. That is price discovery. _Source: syllabus Business Studies Part II, Chapter 10, Financial Markets._

Open this question →

How to practise

  1. Choose a Corporate Finance question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Financial Management topics

Investment ManagementFinancial ManagementBusiness StudiesFinancial MarketsSimple and Compound InterestTime Value of MoneySecurities MarketsCapital Budgeting