These are ACCA F9 (FM) Financial Management MCQs for Part-B of the Syllabus “Financial management environment”.

These multiple-choice questions (MCQs) are designed to help ACCA F9 students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

Please note:

  • Students should not attempt these MCQs until they have finished the entire chapter.
  • All questions are compulsory, so please do not skip any.

We hope that these MCQs will be a valuable resource for students preparing for the ACCA F9 (FM) exam.


Course:ACCB – Association of Chartered Certified Accountants
Fundamental Level:Applied Skills
Subject:Financial Management
Paper:F9 – FR
Chapter and Topic
  • The economic environment for business ,
  • The nature and role of financial markets and institutions,
  • The nature and role of money markets
Syllabus Area:B – “Financial management environment”
Questions Type:CBE MCQs
Exam Section:Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part B of the Syllabus; “Financial management environment” of ACCA F9 (FM) Financial Management Module.


These MCQs are not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate


Students will get their F9 CBE MCQs Test results after they finish the entire test. They will also be able to see the correct and incorrect answers, as well as explanations for the incorrect questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “(select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

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F9 (FM) - Part B - MCQs - Financial management environment

Course: ACCA - Association of Chartered Certified Accountants
F9 (FM) - Financial Management
Syllabus Area: B - Financial management environment
Chapter: 02 The economic environment for business, 03 Financial markets, money markets and institutions
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit


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1 / 21

If a government has a macroeconomic policy objective of expanding the overall level of economic activity, which TWO of the following measures would be consistent with such an objective?

2 / 21

Which TWO of the following are among the main goals of macroeconomic policy?

3 / 21

Which of the following represent forms of market failure where regulation may be a solution?

  1. Imperfect competition
  2. Social costs or externalities
  3. Imperfect information

4 / 21

If the US dollar weakens against the pound sterling, will UK importers suffer or benefit?

5 / 21

If the US dollar weakens against the pound sterling, will UK exporters suffer or benefit?

6 / 21

The following statements relate to fiscal policy and demand management.

Which of the statement(s) is/are TRUE?

7 / 21

Which TWO of the following statement TRUE?

8 / 21

Governments have a number of economic targets as part of their fiscal policy.

Which of the following government actions relate predominantly to fiscal policy?

  1. Decreasing interest rates in order to stimulate consumer spending.
  2. Reducing taxation while maintaining public spending.
  3. Using official foreign currency reserves to buy the domestic currency.
  4. Borrowing money from the capital markets and spending it on public works.

9 / 21

Which of the following statements are correct?

  1. A certificate of deposit is an example of a money market instrument.
  2. Money market deposits are short-term loans between organisations such as banks.
  3. Treasury bills are bought and sold on a discount basis.

10 / 21

Which of the following statements relating to money markets is/are true?

  1. Lending is for periods greater than one
  2. Lending is
  3. Borrowers are mainly small

11 / 21

Which of the following statement is TRUE?

12 / 21

Rank the following from highest risk to lowest risk from the investor's perspective.

  1. Preference share
  2. Treasury bill
  3. Corporate bond
  4. Ordinary share

13 / 21

AB plc, a company listed in the UK and Australia, decides to issue unsecured US dollar bonds in Australia.

Which of the following is the correct definition for these bonds?

14 / 21

What role would the money market have in a letter of credit arrangement?

15 / 21

A listed company is to enter into a sale and repurchase agreement on the money market.

The company has agreed to sell $10 million of treasury bills for $9.6 million and will buy them back in 50 days' time for $9.65 million.

Assume a 365-day year.

What is the implicit annual interest rate in this transaction? (to the nearest 0.01%)

_______ %

16 / 21

which THREE of the following statements correctly describe the functions that financial intermediaries fulfil for customers and borrowers?

17 / 21

Which of the following organisations is most likely to benefit from a period of high price inflation?

18 / 21

Which TWO of the following statements are FALSE?

19 / 21

As the economy booms and approaches the limits of productivity at a point in time, which of the following statement is TRUE description of the impact of this?

20 / 21

A government follows an expansionary monetary policy.

How would this typically affect businesses?

21 / 21

A government has adopted a contractionary fiscal policy.

How would this typically affect businesses?

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