Question 1

Which of the following statements most correctly describes the process of capital formation?

Accepted Answer

A) In a highly developed economy,capital formation takes place directly. 
B) Capital formation takes place whenever resources are used to produce building,machinery,and other equipment to be used in the production of goods for consumer use. 
C) The direct process of capital formation can work only if the proper legal instruments and financial intermediaries exist. 
D) All of the above statements are correct. 
A) In a highly developed economy,capital formation takes place directly. 
B) Capital formation takes place whenever resources are used to produce building,machinery,and other equipment to be used in the production of goods for consumer use. 
C) The direct process of capital formation can work only if the proper legal instruments and financial intermediaries exist. 
D) All of the above statements are correct.

Question 2

Finance has its origins in:

Accepted Answer

A) economics and statistics 
B) accounting and mathematics 
C) management and operations 
D) economics and accounting 
A) economics and statistics 
B) accounting and mathematics 
C) management and operations 
D) economics and accounting

Question 3

Programs passed by the federal government in response to the financial crisis of 2007-2009 include all of the following except:

Accepted Answer

A) Economic Security Act 
B) Toxic Asset Response Program 
C) American Real Estate Reinvestment Act 
D) only a and b were passed 
E) none of the above were passed 
A) Economic Security Act 
B) Toxic Asset Response Program 
C) American Real Estate Reinvestment Act 
D) only a and b were passed 
E) none of the above were passed

Question 4

Finance has its origins in:

Accepted Answer

A) economics and statistics 
B) accounting and sociology 
C) accounting and economics 
D) psychology and mathematics 
A) economics and statistics 
B) accounting and sociology 
C) accounting and economics 
D) psychology and mathematics

Question 5

Programs passed by the federal government in response to the financial crisis of 2007-2009 include all of the following except:

Accepted Answer

A) Economic Security Act 
B) Toxic Asset Response Program 
C) American Real Estate Reinvestment Act 
D) only a and b were passed 
E) none of the above were passed 
A) Economic Security Act 
B) Toxic Asset Response Program 
C) American Real Estate Reinvestment Act 
D) only a and b were passed 
E) none of the above were passed

Question 6

Entrepreneurial 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 7

Among the six principles of finance,all are included except:

Accepted Answer

A) Money has a time value. 
B) Higher returns are expected for taking on more risk 
C) Diversification of investments can reduce risk 
D) Financial markets are efficient in pricing securities 
E) all of the above are included 
A) Money has a time value. 
B) Higher returns are expected for taking on more risk 
C) Diversification of investments can reduce risk 
D) Financial markets are efficient in pricing securities 
E) all of the above are included

Question 8

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) financial markets 
E) none of the above 
A) financial management 
B) investments 
C) financial institutions 
D) financial markets 
E) none of the above

Question 9

The principle of finance that " higher returns are expected for taking on less risk " implies that rational investors would choose only safe investment because they generally do not feel that a higher return enough to justify taking greater risk.

Accepted Answer

A) True 
 B)False

Question 10

If the interest rate is greater than 0%,then a dollar today is worth

Accepted Answer

A) more than a dollar tomorrow 
B) the same as a dollar tomorrow 
C) less than a dollar tomorrow 
D) there is not sufficient information to tell 
A) more than a dollar tomorrow 
B) the same as a dollar tomorrow 
C) less than a dollar tomorrow 
D) there is not sufficient information to tell

Question 11

To study finance at the micro level is to study of all but which of the following?

Accepted Answer

A) fund raising for business firms 
B) financial institutions 
C) asset management 
D) financial planning 
A) fund raising for business firms 
B) financial institutions 
C) asset management 
D) financial planning

Which of the following statements most correctly describes the process of capital formation?

Finance has its origins in:

Programs passed by the federal government in response to the financial crisis of 2007-2009 include all of the following except:

Finance has its origins in:

Programs passed by the federal government in response to the financial crisis of 2007-2009 include all of the following except:

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

Among the six principles of finance,all are included except:

The principle of finance that " higher returns are expected for taking on less risk " implies that rational investors would choose only safe investment because they generally do not feel that a higher return enough to justify taking greater risk.

If the interest rate is greater than 0%,then a dollar today is worth

To study finance at the micro level is to study of all but which of the following?

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 Valuation

Securities 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

Which of the following statements most correctly describes the process of capital formation?

Finance has its origins in:

Programs passed by the federal government in response to the financial crisis of 2007-2009 include all of the following except:

Finance has its origins in:

Programs passed by the federal government in response to the financial crisis of 2007-2009 include all of the following except:

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

Among the six principles of finance,all are included except:

The principle of finance that " higher returns are expected for taking on less risk " implies that rational investors would choose only safe investment because they generally do not feel that a higher return enough to justify taking greater risk.

If the interest rate is greater than 0%,then a dollar today is worth

To study finance at the micro level is to study of all but which of the following?

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 Valuation

Securities 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