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Financial Management Formulas MCQ Bank

This document is a multiple-choice question bank for a Construction Economics and Finance course aimed at civil engineering students in their eighth semester. It covers key concepts such as the time value of money, internal rate of return, and methods of capital budgeting. The questions are designed to test students' understanding of financial principles relevant to construction economics.

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Mayank Meshram
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21 views1 page

Financial Management Formulas MCQ Bank

This document is a multiple-choice question bank for a Construction Economics and Finance course aimed at civil engineering students in their eighth semester. It covers key concepts such as the time value of money, internal rate of return, and methods of capital budgeting. The questions are designed to test students' understanding of financial principles relevant to construction economics.

Uploaded by

Mayank Meshram
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

MCQ QUESTION BANK

BE VIII SEM. [CIVIL] Construction Economics and Finance

Instructions:
1) Tick Right One ✓
2) Make Tick Mark Within Bracket
UNIT I
1) Time value of money is one of the most _______ phenomenon in
finance?
a. Important
b. Secondary
c. Unimportant
d. Fundamental
2) Time value of money indicates that
a. A unit of money obtained today is worth more than a unit of money obtained
in future
b. A unit of money obtained today is worth less than a unit of money obtained in
future
c. There is no difference in the value of money obtained today and tomorrow
d. None of the above
3) If the nominal rate of interest is 10% per annum and there is quarterly
compounding, the effective rate of interest will be:
a. 10% per annum
b. 10.10 per annum
c. 10.25%per annum
d. 10.38% per annum
4) The cash flows method, utilized by the internal rate of return and net present value
method are
a. Future cash flows
b. Lean cash flows
c. Discounted cash flows
d. Vertical cash flows
5) Which method in a capital budgeting is based on the discounted cash flow?
a. Net equity budgeting method
b. Net capital budgeting method
c. Net future value method
d. Net present value method
6) Which of the option is not a part of the three primary procedure of firm valuation?
a. Market Share
b. Balance sheet
c. Income or earnings
d. Discounted Cash flow
7) Internal rate of return is
a. The rate at which discounted cash inflow is equal to the discounted cash
outflow
b. The rate at which discounted cash inflow is less than discounted cash outflow
c. The rate at which discounted cash inflow is more than discounted cash outflow
d. None of the above
8) The rate of return that an investment provides its investors is classified as
a. Investment return rate
b. Internal rate of return
c. International rate of return
d. Intrinsic rate of return
9) In Internal rate of return’s the discount rate which forces the net present values to
become zero is classified as
a. A positive rate of return
b. Negative rate of return
c. External rate of return
d. Internal rate of return
10) Which of the following explains the term economic growth?
a. Increase in per capita production
b. Increase in per capita real income

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