Milestone 4 Introduction to Business Sophia

Exam (elaborations) Milestone 4 Introduction to Business Sophia 1 Which of the following is true regarding discount rate controls? The lower the discount rate a bank has to pay, the more difficult it becomes for consumers to borrow money. The lower the discount rate a bank has to pay, the more likely the health of the economy has declined. The higher the discount rate a bank has to pay, the more money there is in supply. The higher the discount rate a bank has to pay, the less willing a bank will be to lend money. CONCEPT Federal Reserve 2 Anita was trying to build her investment portfolio. She was willing to assume more risk if it meant she would earn more money. Which type of investment below will Anita likely be interested in making? Buying several certificates of deposit Buying a corporate bond This studyB souurycien wgas ad ogwonlvoaedrend mby e1n00t0 b00o8n28d from CourseH on :58:42 GMT -05:00 This study resource was shared via CourseH Milestone 4 Introduction to Business Sophia Buying shares of an unproven stock CONCEPT Investors and Private Placement 3 Which of the following best describes a promissory note? It is an agreement where a financial institution keeps a monetary deposit for a defined period of time. It is a legal instrument signed by a borrower that defines a specific payback date and amount for a loan. It is a document that describes the rights a borrowing member has with regard to a financial institution. It is an agreement that allows a business to take possession of goods it needs from a supplier. CONCEPT Trade Credit and Promissory Notes 4 Riley had a checking account and a savings account with a bank. She used online access to her account to move $50 each month from her checking account to her savings account. Which of the following does this scenario illustrate? An electronic funds transfer An automated clearing house An automatic teller machine A point of sale terminal CONCEPT Financial Institutions and Their Services T5his study source was downloaded by from CourseH on :58:42 GMT -05:00 This study resource was shared via CourseH A large home improvement retail chain planned to expand its business to include several stores focused on high-end home furnishings and fixtures. The management knew the chosen financing option would be more expensive to administer and take more time to arrange. However, the company felt it could benefit from the longer repayment period of at least 20 years. Which of the following types of financing did the company use? Venture capitalist Stock offering Long term loan Corporate bond CONCEPT Debt Financing 6 Which of the following describes a speculative risk? A retail store loses all inventory as a result of a flood. A farmer loses all of his crops due to a season-long drought. An investor loses money after investing in a startup business. A restaurant burns to the ground because of a grease fire. CONCEPT Risk Management 7 Kirsten was the financial manager for a chain of ladies' apparel stores. She reviewed the weekly operating activities, such as buying inventory, paying employees to work in retail stores and paying rent on the retail spaces. Which responsibility of a financial manager below does this scenario describe? This study source was downloaded by from CourseH on :58:42 GMT -05:00 This study resource was shared via CourseH Determining long term investments Getting funds for investment opportunities Overseeing day-to-day financial