FIN multiple Questions
Please Hi light the correct answer thank you J
Question 1
An area of finance that refers to the physical locations or electronic forums that facilitate the flow of funds among investors, businesses, and governments is called:
Answer
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financial management |
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investments |
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financial institutions |
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financial markets |
2 points
Question 2
____________________ provide the record-keeping mechanism for showing ownership of the financial instruments used in the flow of financial funds between savers and borrowers and record revenues, expenses, and profitability of organizations that produce and exchange goods and services.
Answer
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Financial Managers |
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Accountants |
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Operations Managers |
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Statisticians |
2 points
Question 3
The goal of the financial manager in a profit-seeking organization is to maximize:
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the value of perquisites. |
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the owners’ wealth. |
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the firm’s profits |
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the firm’s earnings |
2 points
Question 4
_______________ is the study of how growth-driven, performance-focused, early-stage (from development through early rapid growth) firms raise financial capital and manage their operations and assets.
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Personal finance |
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Corporate finance |
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Entrepreneurial finance |
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Investment banking |
2 points
Question 5
____________________ in business involves making decisions relating to the efficient use of financial resources in the production and sale of goods and services.
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Financial management |
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Financial economics |
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Investment management |
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Asset allocation |
2 points
Question 6
The primary securities markets are
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the markets for previously issued securities such as the New York Stock Exchange |
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the markets where financial assets such as stocks and bonds are initially issued |
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the three most important financial markets in any economy |
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the markets for stocks and bonds only |
2 points
Question 7
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:
Answer
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financial management |
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investments |
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financial institutions |
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financial markets |
2 points
Question 8
Economists use a ___________________ framework to explain how the prices and quantities of goods and services are determined in a free-market economic system.
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opportunity |
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marginal cost |
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supply-and-demand |
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anti-monopoly |
2 points
Question 9
The issuing of new securities, mortgages, and other claims to wealth takes place in the:
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secondary market |
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money market |
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primary market |
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securities market |
2 points
Question 10
The theory of ___________________ implies that information is quickly embedded in prices making it difficult for investors to “beat the market.”
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stock investing |
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efficient markets |
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portfolio management |
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asset allocation |
2 points
Question 11
Which of the following are not included in M1?
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negotiable orders of withdrawal |
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automatic transfer service accounts |
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money market deposit accounts |
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credit union share draft accounts |
2 points
Question 12
Barter involves the exchange of:
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goods for gold |
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goods for silver |
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gold for silver |
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goods and services |
2 points
Question 13
The supply of a currency in international markets depends largely on the:
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Federal Reserve System |
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imports of the issuing country |
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amount of exports that currency will buy from the issuing country |
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confidence of market participants in the restraint and ability of the monetary authority issuing the currency |
2 points
Question 14
Money decreed to be “legal tender” for the payment of debts is money backed by:
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precious metals |
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commodities |
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government creditworthiness |
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gold or silver |
2 points
Question 15
A ____________ is a short-term debt instrument issued by commercial banks in denominations of $100,000 or more with typical maturities ranging from one month to one year that have an active secondary market that allows short-term investors to easily match their cash or liquidity needs when they arise.
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negotiable certificate of deposit (NCD) |
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A repurchase agreement |
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government bond |
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money market security |
2 points
Question 16
Paper money fully backed by a precious metal and issued by the government is called:
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fiat money |
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representative full-bodied money |
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full-bodied money |
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credit money |
2 points
Question 17
The savings-investment process
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involves the transfer of business funds to individuals for investing in stocks and bonds |
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involves the transfer of business funds to individuals for investing in homes |
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involves the transfer in individual savings to the Federal Government. |
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involves the transfer in individual savings to business firms in exchange for their securities. |
2 points
Question 18
_______________________ is the sum of an individual’s money, real assets, and financial assets or claims against others less the individual’s debt obligations.
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Portfolio value |
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Individual net worth |
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Personal wealth |
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Investment value |
2 points
Question 19
Paper money popularly called continentals was issued by the U.S. government to help finance which of the following wars?
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Civil War |
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World War I |
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Revolutionary War |
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Spanish-American War |
2 points
Question 20
The only paper money of significance in the economy today is:
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silver certificates |
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demand deposits |
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greenbacks |
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Federal Reserve notes |
