DECA Finance Exam Questions and
Answers Already Graded A
debtor-creditor relationship ✔✔A debtor is someone who owes a financial obligation (a "debt")
to another, known as the creditor. Interest must be charged.
affinity fraud ✔✔- Affinity fraud refers to investment scams that prey upon members of
identifiable groups, such as religious or ethnic communities, the elderly, or professional groups.
- The fraudsters who promote affinity scams frequently are - or pretend to be - members of the
group.
- Many affinity scams involve Ponzi or Pyramid schemes
phishing ✔✔the fraudulent practice of sending emails purporting to be from reputable companies
in order to induce individuals to reveal personal information, such as passwords and credit card
numbers.
Types of communication (up and downward and lateral) ✔✔- Upward: process of information
flowing from the lower levels of a hierarchy to the upper levels
,- Downward: occurs when information and messages flow down through an organization's
formal chain of command or hierarchical structure. In other words, messages and orders start at
the upper levels of the organizational hierarchy and move down toward the bottom levels.
- Lateral/Horizontal: the exchange, imparting or sharing of information, ideas or feeling between
people within a community, peer groups, departments or units of an organization who are at or
about the same hierarchical level as each other for the purpose of coordinating activities, efforts
or fulfilling a common purpose or goal.
economic resources ✔✔Economic resources are the goods or services available to individuals
and businesses used to produce valuable consumer products. Include land, labor, capital, and
entrepreneurship, also known as factors of production.
convergence ratio ✔✔the measure of a company's ability to meet its financial obligations. In
broad terms, the higher the coverage ratio, the better the ability of the enterprise to fulfill its
obligations to its lenders.
financial consolidation ✔✔the process of combining financial data from several departments or
business entities within an organization, usually for reporting purposes.
, Data Mining ✔✔- the practice of examining large databases in order to generate new
information. (the process of automated extraction of hidden, previously unknown and potentially
useful information from large databases.)
- Includes artificial neutral networks, decision trees, dashboards, nearest-neighbor method
Artificial Neutral Networks ✔✔Set up in a similar way to neurons in our brain. We use a digital
computer to run a simulation of a bunch of heavily interconnected little mini-programs which
stand in for the neurons of our simulated neural network.
Decision Trees ✔✔a decision support tool that uses a tree-like graph or model of decisions and
their possible consequences, including chance event outcomes, resource costs, and utility. It is
one way to display an algorithm.
Dashboards ✔✔a user interface that, somewhat resembling an automobile's dashboard, organizes
and presents information in a way that is easy to read.
Nearest Neighbor Method ✔✔a prediction technique that is quite similar to clustering - its
essence is that in order to predict what a prediction value is in one record look for records with
similar predictor values in the historical database and use the prediction value from the record
that it "nearest" to the unclassified record.
Answers Already Graded A
debtor-creditor relationship ✔✔A debtor is someone who owes a financial obligation (a "debt")
to another, known as the creditor. Interest must be charged.
affinity fraud ✔✔- Affinity fraud refers to investment scams that prey upon members of
identifiable groups, such as religious or ethnic communities, the elderly, or professional groups.
- The fraudsters who promote affinity scams frequently are - or pretend to be - members of the
group.
- Many affinity scams involve Ponzi or Pyramid schemes
phishing ✔✔the fraudulent practice of sending emails purporting to be from reputable companies
in order to induce individuals to reveal personal information, such as passwords and credit card
numbers.
Types of communication (up and downward and lateral) ✔✔- Upward: process of information
flowing from the lower levels of a hierarchy to the upper levels
,- Downward: occurs when information and messages flow down through an organization's
formal chain of command or hierarchical structure. In other words, messages and orders start at
the upper levels of the organizational hierarchy and move down toward the bottom levels.
- Lateral/Horizontal: the exchange, imparting or sharing of information, ideas or feeling between
people within a community, peer groups, departments or units of an organization who are at or
about the same hierarchical level as each other for the purpose of coordinating activities, efforts
or fulfilling a common purpose or goal.
economic resources ✔✔Economic resources are the goods or services available to individuals
and businesses used to produce valuable consumer products. Include land, labor, capital, and
entrepreneurship, also known as factors of production.
convergence ratio ✔✔the measure of a company's ability to meet its financial obligations. In
broad terms, the higher the coverage ratio, the better the ability of the enterprise to fulfill its
obligations to its lenders.
financial consolidation ✔✔the process of combining financial data from several departments or
business entities within an organization, usually for reporting purposes.
, Data Mining ✔✔- the practice of examining large databases in order to generate new
information. (the process of automated extraction of hidden, previously unknown and potentially
useful information from large databases.)
- Includes artificial neutral networks, decision trees, dashboards, nearest-neighbor method
Artificial Neutral Networks ✔✔Set up in a similar way to neurons in our brain. We use a digital
computer to run a simulation of a bunch of heavily interconnected little mini-programs which
stand in for the neurons of our simulated neural network.
Decision Trees ✔✔a decision support tool that uses a tree-like graph or model of decisions and
their possible consequences, including chance event outcomes, resource costs, and utility. It is
one way to display an algorithm.
Dashboards ✔✔a user interface that, somewhat resembling an automobile's dashboard, organizes
and presents information in a way that is easy to read.
Nearest Neighbor Method ✔✔a prediction technique that is quite similar to clustering - its
essence is that in order to predict what a prediction value is in one record look for records with
similar predictor values in the historical database and use the prediction value from the record
that it "nearest" to the unclassified record.
