Question 1

Passing laws and setting fiscal and monetary policies is the role of who?

Accepted Answer

A)  Policy makers 
B)  Monetary system 
C)  Financial institutions 
D)  Financial markets 
E)  None of the above 
A)  Policy makers 
B)  Monetary system 
C)  Financial institutions 
D)  Financial markets 
E)  None of the above

Question 2

Personal finance is the study of how individuals prepare for financial emergencies, protect against premature death and property losses, and accumulate wealth.

Accepted Answer

A) True 
 B)False

Question 3

______________ behavior refers to how an individual or organization treats others legally, fairly, and honestly.

Accepted Answer

A)  Principal-agent 
B)  Stakeholder 
C)  Responsible 
D)  Ethical 
E)  none of the above 
A)  Principal-agent 
B)  Stakeholder 
C)  Responsible 
D)  Ethical 
E)  none of the above

Question 4

This is the study of how growth driven, performance focused, early stage firms raise financial capital and manage operations and assets.

Accepted Answer

A)  Corporate finance 
B)  Business finance 
C)  Entrepreneurial finance 
D)  Personal finance 
E)  None of the above 
A)  Corporate finance 
B)  Business finance 
C)  Entrepreneurial finance 
D)  Personal finance 
E)  None of the above

Question 5

__________ are where money market securities, bonds, and mortgages are originated and traded.

Accepted Answer

A)  Debt securities markets 
B)  Bond markets 
C)  Mortgage markets 
D)  Equity Securities markets 
E)  Derivative securities markets 
A)  Debt securities markets 
B)  Bond markets 
C)  Mortgage markets 
D)  Equity Securities markets 
E)  Derivative securities markets

Question 6

Most of the impetus for growth in the U.S. economy comes from large companies.

Accepted Answer

A) True 
 B)False

Question 7

The issuing of new securities, mortgages, and other claims to wealth takes place in the:

Accepted Answer

A)  secondary market 
B)  money market 
C)  primary market 
D)  securities market 
A)  secondary market 
B)  money market 
C)  primary market 
D)  securities market

Question 8

This is the locations or electronic forums that facilitate the flow of funds among investors, businesses, and governments.

Accepted Answer

A)  Financial management 
B)  Investments 
C)  Financial markets 
D)  Financial institutions 
E)  Financial environment 
A)  Financial management 
B)  Investments 
C)  Financial markets 
D)  Financial institutions 
E)  Financial environment

Question 9

Because the relative values of currencies may change, firms cannot use the currency exchange markets to reduce the risk of holding too much of certain currencies.

Accepted Answer

A) True 
 B)False

Question 10

Finance is the study of how individuals, institutions, and businesses acquire, spend and manage money and other financial resources.

Accepted Answer

A) True 
 B)False

Question 11

The value of money results from

Accepted Answer

A)  its backing 
B)  rates set by the Federal Reserve 
C)  its purchasing power 
D)  its backing by gold 
A)  its backing 
B)  rates set by the Federal Reserve 
C)  its purchasing power 
D)  its backing by gold

Question 12

__________ are where the transfer of existing debt and equity securities between investors occurs.

Accepted Answer

A)  Money markets 
B)  Capital markets 
C)  Primary markets 
D)  Secondary markets 
A)  Money markets 
B)  Capital markets 
C)  Primary markets 
D)  Secondary markets

Question 13

The theory of ___________________ implies that information is quickly embedded in prices making it difficult for investors to "beat the market."

Accepted Answer

A)  stock investing 
B)  efficient markets 
C)  portfolio management 
D)  asset allocation 
A)  stock investing 
B)  efficient markets 
C)  portfolio management 
D)  asset allocation

Question 14

An area of finance that involves the sale or marketing of securities, the analysis of securities, and the management of investment risk through portfolio diversification is referred to as

Accepted Answer

A)  financial management 
B)  investments 
C)  financial institutions 
D)  Financial Markets: Characteristics and Types 
A)  financial management 
B)  investments 
C)  financial institutions 
D)  Financial Markets: Characteristics and Types

Question 15

The principle of finance that "money has a time value" implies Money in hand today is worth less than the promise of receiving the same amount in the future because a sum of money today could be invested and grow over time.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following financial institutions market "seasoned" instruments and securities?

Accepted Answer

A)  brokerage firms 
B)  finance companies 
C)  mortgage lenders 
D)  commercial banks 
A)  brokerage firms 
B)  finance companies 
C)  mortgage lenders 
D)  commercial banks

Question 17

This involves the sale or marketing of securities, the analysis of securities, and the management of investment risk through portfolio diversification.

Accepted Answer

A)  Financial management 
B)  Investments 
C)  Financial markets 
D)  Financial institutions 
E)  Financial environment 
A)  Financial management 
B)  Investments 
C)  Financial markets 
D)  Financial institutions 
E)  Financial environment

Question 18

$1,000 invested today at 6% interest would be worth ________ one year from now

Accepted Answer

A)  $1,600 
B)  $1,060 
C)  $1,160 
D)  $1,006 
A)  $1,600 
B)  $1,060 
C)  $1,160 
D)  $1,006

Question 19

Involves evaluating financial performance and preparing financial plans.

Accepted Answer

A)  Cash management analyst 
B)  Capital expenditures analyst 
C)  Credit analyst 
D)  Financial analyst 
E)  Tax analyst 
A)  Cash management analyst 
B)  Capital expenditures analyst 
C)  Credit analyst 
D)  Financial analyst 
E)  Tax analyst

Question 20

The secondary securities markets are involved in creating and issuing new securities, mortgages, and other claims to wealth.

Accepted Answer

A) True 
 B)False

Passing laws and setting fiscal and monetary policies is the role of who?

Personal finance is the study of how individuals prepare for financial emergencies, protect against premature death and property losses, and accumulate wealth.

______________ behavior refers to how an individual or organization treats others legally, fairly, and honestly.

This is the study of how growth driven, performance focused, early stage firms raise financial capital and manage operations and assets.

__________ are where money market securities, bonds, and mortgages are originated and traded.

Most of the impetus for growth in the U.S. economy comes from large companies.

The issuing of new securities, mortgages, and other claims to wealth takes place in the:

This is the locations or electronic forums that facilitate the flow of funds among investors, businesses, and governments.

Because the relative values of currencies may change, firms cannot use the currency exchange markets to reduce the risk of holding too much of certain currencies.

Finance is the study of how individuals, institutions, and businesses acquire, spend and manage money and other financial resources.

The value of money results from

__________ are where the transfer of existing debt and equity securities between investors occurs.

The theory of ___________________ implies that information is quickly embedded in prices making it difficult for investors to "beat the market."

An area of finance that involves the sale or marketing of securities, the analysis of securities, and the management of investment risk through portfolio diversification is referred to as

The principle of finance that "money has a time value" implies Money in hand today is worth less than the promise of receiving the same amount in the future because a sum of money today could be invested and grow over time.

Which of the following financial institutions market "seasoned" instruments and securities?

This involves the sale or marketing of securities, the analysis of securities, and the management of investment risk through portfolio diversification.

$1,000 invested today at 6% interest would be worth ________ one year from now

Involves evaluating financial performance and preparing financial plans.

The secondary securities markets are involved in creating and issuing new securities, mortgages, and other claims to wealth.

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuations

Securities and Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters

Exam 1: The Financial Environment

Passing laws and setting fiscal and monetary policies is the role of who?

Personal finance is the study of how individuals prepare for financial emergencies, protect against premature death and property losses, and accumulate wealth.

______________ behavior refers to how an individual or organization treats others legally, fairly, and honestly.

This is the study of how growth driven, performance focused, early stage firms raise financial capital and manage operations and assets.

__________ are where money market securities, bonds, and mortgages are originated and traded.

Most of the impetus for growth in the U.S. economy comes from large companies.

The issuing of new securities, mortgages, and other claims to wealth takes place in the:

This is the locations or electronic forums that facilitate the flow of funds among investors, businesses, and governments.

Because the relative values of currencies may change, firms cannot use the currency exchange markets to reduce the risk of holding too much of certain currencies.

Finance is the study of how individuals, institutions, and businesses acquire, spend and manage money and other financial resources.

The value of money results from

__________ are where the transfer of existing debt and equity securities between investors occurs.

The theory of ___________________ implies that information is quickly embedded in prices making it difficult for investors to "beat the market."

An area of finance that involves the sale or marketing of securities, the analysis of securities, and the management of investment risk through portfolio diversification is referred to as

The principle of finance that "money has a time value" implies Money in hand today is worth less than the promise of receiving the same amount in the future because a sum of money today could be invested and grow over time.

Which of the following financial institutions market "seasoned" instruments and securities?

This involves the sale or marketing of securities, the analysis of securities, and the management of investment risk through portfolio diversification.

$1,000 invested today at 6% interest would be worth ________ one year from now

Involves evaluating financial performance and preparing financial plans.

The secondary securities markets are involved in creating and issuing new securities, mortgages, and other claims to wealth.

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuations

Securities and Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Short-Term Business Financing

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters