Question 1

__________ are where corporate ownership shares are initially sold 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 2

__________ are electronic markets in which banks and institutional traders buy and sell various currencies on behalf of businesses and other clients.

Accepted Answer

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

Question 3

The role of financial markets is to market and facilitate the transfer of financial assets.

Accepted Answer

A) True 
 B)False

Question 4

__________ are where debt securities of one year or less are issued or traded.

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 5

In the United States, the central bank is the Federal Reserve System.

Accepted Answer

A) True 
 B)False

Question 6

A basic requirement of an effective financial system includes:

Accepted Answer

A)  storing money 
B)  transferring money 
C)  designing money 
D)  all of the above 
A)  storing money 
B)  transferring money 
C)  designing money 
D)  all of the above

Question 7

One of the most significant functions of the financial system is the creation of money, which serves as a medium of exchange.

Accepted Answer

A) True 
 B)False

Question 8

This is the financial system, institutions, markets, businesses, individuals, and global interactions that help the economy operate efficiency.

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

Money markets are markets where equity securities and debt securities with maturities of greater than one year are traded.

Accepted Answer

A) True 
 B)False

Question 10

Accumulating and leading and investing savings 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 11

Successful businesses typically progress through a series of life-cycle stages-from the idea stage to exiting the business; these five stages include the:

Accepted Answer

A)  development stage, startup stage, survival stage, rapid growth stage, and maturity stage. 
B)  idea stage, design stage, operating stage, rebuilding stage, and decline stage 
C)  development stage, operating stage, rebuilding stage, rapid growth stage, and maturity stage 
D)  idea stage, startup stage, rapid growth stage, survival stage, and decline stage 
A)  development stage, startup stage, survival stage, rapid growth stage, and maturity stage. 
B)  idea stage, design stage, operating stage, rebuilding stage, and decline stage 
C)  development stage, operating stage, rebuilding stage, rapid growth stage, and maturity stage 
D)  idea stage, startup stage, rapid growth stage, survival stage, and decline stage

Question 12

Finance is:

Accepted Answer

A)  the study of how individuals, institutions, governments, and businesses acquire, spend, and manage money and other financial assets 
B)  the study of how businesses acquire, spend, and manage money and other financial assets 
C)  the study of how governments, and businesses acquire, spend, and manage money and other financial assets 
D)  the study of how money is used to purchase goods and services 
A)  the study of how individuals, institutions, governments, and businesses acquire, spend, and manage money and other financial assets 
B)  the study of how businesses acquire, spend, and manage money and other financial assets 
C)  the study of how governments, and businesses acquire, spend, and manage money and other financial assets 
D)  the study of how money is used to purchase goods and services

Question 13

Involves preparing financial statements for tax purposes.

Accepted Answer

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

Question 14

Brokerage firms do not perform which of the following functions?

Accepted Answer

A)  handle shares of ownership 
B)  create money 
C)  market existing securities 
D)  transfer shares of ownership 
A)  handle shares of ownership 
B)  create money 
C)  market existing securities 
D)  transfer shares of ownership

Question 15

Which statement best describes the six principles of finance?

Accepted Answer

A)  Money has a time value; Higher returns are expected for taking on more risk; Diversification of investments does not impact risk; Financial markets are efficient in pricing securities; Manager and stockholder objectives may differ; Reputation matters. 
B)  Money has a time value; Higher returns are expected for taking on more risk; Diversification of investments can reduce risk; Financial markets are efficient in pricing securities; Manager and stockholder objectives may differ; Reputation matters. 
C)  Money has a time value; Higher returns are expected for taking on more risk; Diversification of investments can reduce risk; Financial markets are inefficient in pricing securities; Manager and stockholder objectives may differ; Reputation matters. 
D)  Money has a time value; Higher returns are expected for taking on more risk; Diversification of investments can reduce risk; Financial markets are efficient in pricing securities; Manager and stockholder objectives may differ; Reputation doesn't matter. 
A)  Money has a time value; Higher returns are expected for taking on more risk; Diversification of investments does not impact risk; Financial markets are efficient in pricing securities; Manager and stockholder objectives may differ; Reputation matters. 
B)  Money has a time value; Higher returns are expected for taking on more risk; Diversification of investments can reduce risk; Financial markets are efficient in pricing securities; Manager and stockholder objectives may differ; Reputation matters. 
C)  Money has a time value; Higher returns are expected for taking on more risk; Diversification of investments can reduce risk; Financial markets are inefficient in pricing securities; Manager and stockholder objectives may differ; Reputation matters. 
D)  Money has a time value; Higher returns are expected for taking on more risk; Diversification of investments can reduce risk; Financial markets are efficient in pricing securities; Manager and stockholder objectives may differ; Reputation doesn't matter.

Question 16

An area of finance that involves the study of organizations or intermediaries that help the financial system operate efficiently and transfer funds from savers and investors to individuals, businesses, and governments that seek to spend or invest the funds in physical assets (inventories, buildings, and equipment) is called:

Accepted Answer

A)  financial management 
B)  investments 
C)  financial institutions 
D)  banks 
A)  financial management 
B)  investments 
C)  financial institutions 
D)  banks

Question 17

The financial environment:

Accepted Answer

A)  encompasses the financial markets and global interactions that contribute to an efficiently operating economy. 
B)  encompasses the financial institutions and financial markets that contribute to an efficiently operating economy. 
C)  encompasses the financial system, financial institutions, financial markets, business firms, individuals, and global interactions that contribute to an efficiently operating economy. 
D)  encompasses the trade in goods and services by financial instruments. 
A)  encompasses the financial markets and global interactions that contribute to an efficiently operating economy. 
B)  encompasses the financial institutions and financial markets that contribute to an efficiently operating economy. 
C)  encompasses the financial system, financial institutions, financial markets, business firms, individuals, and global interactions that contribute to an efficiently operating economy. 
D)  encompasses the trade in goods and services by financial instruments.

Question 18

Financial management is the study of financial planning, asset management and fund raising by businesses and financial institutions.

Accepted Answer

A) True 
 B)False

Question 19

Involves analyzing individual client insurance needs and investment plans to meet retirement goals.

Accepted Answer

A)  Stockbroker 
B)  Security analyst 
C)  Investment banking analyst 
D)  Financial planner assistant 
A)  Stockbroker 
B)  Security analyst 
C)  Investment banking analyst 
D)  Financial planner assistant

Question 20

In the United States, most money is created by:

Accepted Answer

A)  depository institutions 
B)  the United States Treasury 
C)  capital markets 
D)  None of the above 
A)  depository institutions 
B)  the United States Treasury 
C)  capital markets 
D)  None of the above

__________ are where corporate ownership shares are initially sold and traded.

__________ are electronic markets in which banks and institutional traders buy and sell various currencies on behalf of businesses and other clients.

The role of financial markets is to market and facilitate the transfer of financial assets.

__________ are where debt securities of one year or less are issued or traded.

In the United States, the central bank is the Federal Reserve System.

A basic requirement of an effective financial system includes:

One of the most significant functions of the financial system is the creation of money, which serves as a medium of exchange.

This is the financial system, institutions, markets, businesses, individuals, and global interactions that help the economy operate efficiency.

Money markets are markets where equity securities and debt securities with maturities of greater than one year are traded.

Accumulating and leading and investing savings is the role of who?

Successful businesses typically progress through a series of life-cycle stages-from the idea stage to exiting the business; these five stages include the:

Finance is:

Involves preparing financial statements for tax purposes.

Brokerage firms do not perform which of the following functions?

Which statement best describes the six principles of finance?

The financial environment:

Financial management is the study of financial planning, asset management and fund raising by businesses and financial institutions.

Involves analyzing individual client insurance needs and investment plans to meet retirement goals.

In the United States, most money is created by:

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

__________ are where corporate ownership shares are initially sold and traded.

__________ are electronic markets in which banks and institutional traders buy and sell various currencies on behalf of businesses and other clients.

The role of financial markets is to market and facilitate the transfer of financial assets.

__________ are where debt securities of one year or less are issued or traded.

In the United States, the central bank is the Federal Reserve System.

A basic requirement of an effective financial system includes:

One of the most significant functions of the financial system is the creation of money, which serves as a medium of exchange.

This is the financial system, institutions, markets, businesses, individuals, and global interactions that help the economy operate efficiency.

Money markets are markets where equity securities and debt securities with maturities of greater than one year are traded.

Accumulating and leading and investing savings is the role of who?

Successful businesses typically progress through a series of life-cycle stages-from the idea stage to exiting the business; these five stages include the:

Finance is:

Involves preparing financial statements for tax purposes.

Brokerage firms do not perform which of the following functions?

Which statement best describes the six principles of finance?

The financial environment:

Financial management is the study of financial planning, asset management and fund raising by businesses and financial institutions.

Involves analyzing individual client insurance needs and investment plans to meet retirement goals.

In the United States, most money is created by:

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