Principles of Finance Final Exam Prep: Test Bank with Verified Solutions

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Principles of finance Final Exam MC TEST FINAL EXAM AND
PRACTICE EXAM 20262027 BANK 2 VERSIONS QUESTIONS
WITH DETAILED VERIFIED ANSWERS EXAM QUESTIONS
WILL COME FROM HERE (100% CORRECT ANSWERS A+
GRADED




Question 1
The optimal economic order quantity depend on:
1. the cost of carrying inventory
2. the cost of placing an order
3. the volume of sales


Select one:
a. 1 and 2
b. 1 and 3
c. 2 and 3
d. 1, 2, and 3
` - ANSWER--d. 1, 2, and 3


Question 2

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Excess reserves are affected by:
1. reserve requirements
2. the repayment of existing bank loans
3. cash withdrawals


Select one:
a. 1 and 2
b. 1 and 3
c. 2 and 3
d. 1, 2, and 3 - ANSWER--The correct answer is: 1, 2, and 3


Question 3
The tools of monetary policy include
Select one:
a. open market operations
b. the purchase of corporate stock
c. the federal government deficit
d. taxation - ANSWER--The correct answer is: open market operations


Question 4
Break-even analysis requires knowing the relationship
Select one:

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a. between sales and earnings
b. between sales and total costs
c. between sales price and fixed costs
d. between sales and assets - ANSWER--The correct answer is: between
sales price and fixed costs


Question 5
A diversified portfolio
Select one:
a. increases systematic risk
b. reduces systematic risk
c. increases unsystematic risk
d. reduces unsystematic risk - ANSWER--The correct answer is: reduces
unsystematic risk


Question 6
A company may pay:
1. a regular quarterly cash dividend
2. stock dividends
3. no dividends


Select one:
a. 1 and 2