FINA 363 TOPHAT EXAM QUESTIONS
AND ANSWERS 100% PASS 2026/2027
Finance first emerged in the early urban civilizations of ____ - ANS Mesopotamia
The practice of using non-public information to make trades on securities is called _____ trading
and is illegal in most countries including the U.S. - ANS insider
The SEC stands for the ____ commission. - ANS Securities and Exchange
Which of the following is/are the Fed responsible of? - ANS Implementing monetary policy
and Overseeing the banking system
T/F Equity refers to an ownership interest in a company. - ANS True
____ refers to equity that is traded in financial markets. - ANS Stock
You are selling 100 shares of Amazon stock you own in your brokerage account -
ANS Secondary Market
Amazon is borrowing by issuing bonds in the bond market - ANS Primary Market
@2026 ALLRIGHTS RESERVED 1
, Which of the following financial intermediaries' primary function is to collect deposits and make
loans? - ANS commercial banks
Limited liability - ANS Investors are not personally liable for the company's obligations
Joint-stock ownership - ANS Trading of company's shares by shareholders does not affect the
company's continued existence
Corporate personhood - ANS The corporation is a separate legal entity from its shareholders
with its own rights and obligations
Corporate ____ refers to the structure of rules, practices, and processes used to direct and
manage a company. - ANS governance
Which of the following institutional investors is the largest owner of Microsoft shares as of July
2024? - ANS Vanguard Group
The board of ____ sets the strategic direction of a corporation and oversees its performance. -
ANS directors
The notion that the shareholders of a corporation are not directly involved in the company's
management is called the ____ of ownership and management. - ANS separation
The Chief ____ Officer is responsible from managing the company's day-to-day operations and
implementing the CEO's vision. - ANS operating
@2026 ALLRIGHTS RESERVED 2
AND ANSWERS 100% PASS 2026/2027
Finance first emerged in the early urban civilizations of ____ - ANS Mesopotamia
The practice of using non-public information to make trades on securities is called _____ trading
and is illegal in most countries including the U.S. - ANS insider
The SEC stands for the ____ commission. - ANS Securities and Exchange
Which of the following is/are the Fed responsible of? - ANS Implementing monetary policy
and Overseeing the banking system
T/F Equity refers to an ownership interest in a company. - ANS True
____ refers to equity that is traded in financial markets. - ANS Stock
You are selling 100 shares of Amazon stock you own in your brokerage account -
ANS Secondary Market
Amazon is borrowing by issuing bonds in the bond market - ANS Primary Market
@2026 ALLRIGHTS RESERVED 1
, Which of the following financial intermediaries' primary function is to collect deposits and make
loans? - ANS commercial banks
Limited liability - ANS Investors are not personally liable for the company's obligations
Joint-stock ownership - ANS Trading of company's shares by shareholders does not affect the
company's continued existence
Corporate personhood - ANS The corporation is a separate legal entity from its shareholders
with its own rights and obligations
Corporate ____ refers to the structure of rules, practices, and processes used to direct and
manage a company. - ANS governance
Which of the following institutional investors is the largest owner of Microsoft shares as of July
2024? - ANS Vanguard Group
The board of ____ sets the strategic direction of a corporation and oversees its performance. -
ANS directors
The notion that the shareholders of a corporation are not directly involved in the company's
management is called the ____ of ownership and management. - ANS separation
The Chief ____ Officer is responsible from managing the company's day-to-day operations and
implementing the CEO's vision. - ANS operating
@2026 ALLRIGHTS RESERVED 2
