Banking Quiz – 123

Banking and Finance Quiz

1. Market value of the cost of capital is decided by?
a) The respective companies
b) The investment market
c) The government
d) Share holders

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Answer d) Share holders

2. Cost of retained earnings is equal to?
a) Cost of equity
b) Cost of debt
c) Cost of term loans
d) Cost of bank loan

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Answer c) Cost of term loans

3. The expansion of CAMP is?
a) Capital amount pricing model
b) Capital asset pricing model
c) Capital asset printing model
d) Capital amount printing model

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Answer b) Capital asset pricing model

4. Working capital is also known as ______ capital?
a) Circulating
b) Fluctuating
c) Fixed
d) Going

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Answer b) Fluctuating

5. Earnings Per Share (EPS) is equal to?
a) Profit before tax/No. of outstanding shares
b) Profit after tax/No. of outstanding shares
c) Profit after tax/Amount of equity share capital
d) Profit after tax less equity dividends/No. of outstanding shares

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Answer b) Profit after tax/No. of outstanding shares

6. The rate of the interest / dividend is not fixed in?
a) Public deposits
b) Preference capital
c) Debentures
d) Equity capital

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Answer a) Public deposits

7. Full form of SLR is?
a) Statutory Liquidity Ratio
b) State Level Recovery
c) Sundry Leverage Ratio
d) State Liquity Reserve

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Answer a) Statutory Liquidity Ratio

8. E.P.S. in share market stands for?
a) Earning per share
b) Electronic Payment System
c) Employee Pension Scroll
d) Equated Payment System

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Answer a) Earning per share

9. Financial leverage helps one to estimate?
a) The business risk
b) The financial risk
c) Both risks
d) Production risk

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Answer c) Both risks

10. Capital budgeting is related to?
a) Long terms assets
b) Short term assets
c) Long terms and short terms assets
d) Fixed assets

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Answer a) Long terms assets