D076 OA Questions And Correct
Answers | UPDATED !!
1. What are the main services offered by financial institutions?
A. Soliciting charitable donations and then managing the distribution of
these funds
B. Accepting a wide variety of deposits, offering investment products,
providing loans, and brokering financial transactions
C. Deciding which assets to invest in to create wealth in the future
D. Evaluating sources of funding for a business project, the capital
structure of a firm, or actions managers could take to increase the value of
the firm - ANSWER : B. Accepting a wide variety of deposits, offering
investment products, providing loans, and brokering financial transactions
2. What is the main objective of personal financial goals?
A. To maximize stock investments
B. To maximize individual utility
C. To maximize charity donations
D. To maximize owner wealth - ANSWER : B. To maximize individual utility
3. Which task does the financial manager of a firm perform that
involves the issuance of new stocks and bonds?
A. Making financing decisions
B. Managing working capital
C. Deciding on accounting standards
,D. Making investing decisions - ANSWER : A. Making financing decisions
4. Why is understanding the definition of finance important in managing
personal finances?
A. It helps individuals compare the costs and benefits of an action to
determine whether to take that action.
B. It helps individuals act ethically with regard to finances.
C.It helps individuals understand legal issues related to finance.
D. It allows individuals to find an investment with the highest return
possible. - ANSWER : A. It helps individuals compare the costs and
benefits of an action to determine whether to take that action.
5. In which type of market would a company issue bonds or stocks for
the first time?
Dealer market
Primary market
Secondary market
Money market - ANSWER : Primary market
6. Which type of financial institution is a mutual fund?
Contractual institution
Depository institution
Investment institution
Federal institution - ANSWER : Investment institution
7. Which financial institution specializes in managing and administering
retirement funds?
, Investment banks
Mutual funds
Pension funds
Private equity - ANSWER : Pension funds
8. Which type of economic indicator is the consumer price index?
Leading indicator
Coincident indicator
Forecasting indicator
Lagging indicator - ANSWER : Lagging indicator
What does the term ethical refer to?
The accepted standards of conduct that guide a person's behavior
An idea or thing used as a measure, norm, or model in comparative
evaluations
One's beliefs about right and wrong, good and bad, or just and unjust
Following the laws and rules set by an authority - ANSWER : The
accepted standards of conduct that guide a person's behavior
A company's officers and board of directors are selling their stocks in the
firm at higher prices due to false accounting reports that made the stock
seem more valuable than it truly was. Which ethical issue is occurring in
this situation?
Conflict between work and personal affairs
Maximizing shareholder value
Answers | UPDATED !!
1. What are the main services offered by financial institutions?
A. Soliciting charitable donations and then managing the distribution of
these funds
B. Accepting a wide variety of deposits, offering investment products,
providing loans, and brokering financial transactions
C. Deciding which assets to invest in to create wealth in the future
D. Evaluating sources of funding for a business project, the capital
structure of a firm, or actions managers could take to increase the value of
the firm - ANSWER : B. Accepting a wide variety of deposits, offering
investment products, providing loans, and brokering financial transactions
2. What is the main objective of personal financial goals?
A. To maximize stock investments
B. To maximize individual utility
C. To maximize charity donations
D. To maximize owner wealth - ANSWER : B. To maximize individual utility
3. Which task does the financial manager of a firm perform that
involves the issuance of new stocks and bonds?
A. Making financing decisions
B. Managing working capital
C. Deciding on accounting standards
,D. Making investing decisions - ANSWER : A. Making financing decisions
4. Why is understanding the definition of finance important in managing
personal finances?
A. It helps individuals compare the costs and benefits of an action to
determine whether to take that action.
B. It helps individuals act ethically with regard to finances.
C.It helps individuals understand legal issues related to finance.
D. It allows individuals to find an investment with the highest return
possible. - ANSWER : A. It helps individuals compare the costs and
benefits of an action to determine whether to take that action.
5. In which type of market would a company issue bonds or stocks for
the first time?
Dealer market
Primary market
Secondary market
Money market - ANSWER : Primary market
6. Which type of financial institution is a mutual fund?
Contractual institution
Depository institution
Investment institution
Federal institution - ANSWER : Investment institution
7. Which financial institution specializes in managing and administering
retirement funds?
, Investment banks
Mutual funds
Pension funds
Private equity - ANSWER : Pension funds
8. Which type of economic indicator is the consumer price index?
Leading indicator
Coincident indicator
Forecasting indicator
Lagging indicator - ANSWER : Lagging indicator
What does the term ethical refer to?
The accepted standards of conduct that guide a person's behavior
An idea or thing used as a measure, norm, or model in comparative
evaluations
One's beliefs about right and wrong, good and bad, or just and unjust
Following the laws and rules set by an authority - ANSWER : The
accepted standards of conduct that guide a person's behavior
A company's officers and board of directors are selling their stocks in the
firm at higher prices due to false accounting reports that made the stock
seem more valuable than it truly was. Which ethical issue is occurring in
this situation?
Conflict between work and personal affairs
Maximizing shareholder value
