Financial Management Practice Questions for BOI/PNB Credit Officer Exam 2022

Financial Management Practice Questions: Financial Management is one of the most important sections for the PNB Credit officer exam 2022 and BOI Credit Officer Exam 2022. In order to prepare oneself better for the upcoming BOI/PNB Credit officer exam 2022, one must prepare a number of multiple-choice questions on various topics. So, in order to prepare you better for your upcoming credit officer exam, we bring to you Financial management practice questions. By solving these MCQs, you can get a better idea of the questions that are asked in the actual exam.

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What’s in the financial Management Practice Questions notes for Credit Officer Exam Free Pdf

1. “Shareholder wealth” in a firm is represented by:

a) the number of people employed in the firm.

b) the book value of the firm’s assets less the book value of its liabilities

c) the amount of salary paid to its employees.

d) the market price per share of the firm’s common stock.

Answer: D

2. The long-run objective of financial management is to:

a) maximize earnings per share.

b) maximize the value of the firm’s common stock.

c) maximize return on investment.

d) maximize market share.

Answer: B

3. What are the earnings per share (EPS) for a company that earned Rs. 100,000 last year in 

after-tax profits, has 200,000 common shares outstanding and Rs. 1.2 million in retained 

earning at the year end?

a) Rs. 100,000

b) Rs. 6.00

c) Rs. 0.50

d) Rs. 6.50

Answer: C

4. A(n) would be an example of a principal, while a(n) would be an example of an agent.

a) shareholder; manager

b) manager; owner

c) accountant; bondholder

d) shareholder; bondholder

Answer: A

5. The market price of a share of common stock is determined by:

a) the board of directors of the firm.

b) the stock exchange on which the stock is listed.

c) the president of the company.

d) individuals buying and selling the stock.

Answer: D

6. The focal point of financial management in a firm is:

a) the number and types of products or services provided by the firm.

b) the minimization of the amount of taxes paid by the firm.

c) the creation of value for shareholders.

d) the dollars profits earned by the firm.

Answer: C

7. ___________________ of a firm refers to the composition of its long-term funds and its 

capital structure.

a) Capitalisation

b) Over-capitalisation

c) Under-capitalisation

d) Market capitalization

Answer: A

8. In the _______________, the future value of all cash inflow at the end of time horizon at 

a particular rate of interest is calculated.

a) Risk-free rate

b) Compounding technique

c) Discounting technique

d) Risk Premium

Answer: C

9. ______________ is the price at which the bond is traded in the stock exchange.

a) Redemption value

b) Face value

c) Market value

d) Maturity value

Answer: C

10. _____________ enhance the market value of shares and therefore equity capital is not 

free of cost.

a) Face value

b) Dividends

c) Redemption value

d) Book value

Answer: B

Sneak-peek into the financial Management Practice Questions PDF

Also read:

  1. Monetary Policy notes for credit officer exam| Download Free PDF Here (
  2. BOI Credit Officer Exam 2022 – Notification Released. (
  3. PNB Credit Officer Exam 2022 – Notification Released. (
  4. PNB Credit Officer FAQs- PNB Credit Officer Exam 2022 (
  5. What is Inflation? Free PDF for BOI/PNB Credit Officer Exam 2022 (
  6. Professional Knowledge for Credit Officer Exams of PNB/BOI 2022 (


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