D076 Test + Quizzes | 368 Questions plus the correct answers
Maria and Mateo are setting To maximize individual utility 3 multiple choice options
financial goals. They decide that
they need to save $200 each
month to reach their goal of
taking their children to visit
their grandparents in Spain next
summer. What is the objective of
setting such a goal?
Unit 2, Module 1 - FINANCIAL
ENVIRONMENT (15%)
Which area of finance deals with Business finance 3 multiple choice options
sources of funding and the
capital structure of corporations
and seeks to increase the value
of a firm to its owners?
What are the main services Accepting a wide variety of deposits, offering investment products,
offered by financial institutions? providing loans, and brokering financial transactions
3 multiple choice options
UNIT 2 TEST
Which type of financial institution Investment institution. Investment institutions provide individuals and
is a mutual fund? firms access to financial markets.
Contractual
institution
Federal
institution
Depository
institution
Investment
institution
A mutual fund is an investment company that continually offers
investments and buys financial securities and instruments (usually
stocks or bonds) on behalf of investors. Mutual fund companies
A mutual fund
often have their own products or portfolios composed of
multiple stocks and bonds. The performance of the funds
determines the company's value. Even though the funds are a pool
of financial securities, investors normally do not have the same
rights that individual stockholders have.
,Which financial institution Pension funds specialize in retirement funds.
specializes in managing and
administering retirement
funds?
Pension funds
Private equity
Investment banks
Which type of economic indicator Lagging indicator 2 multiple choice options
is the consumer price index?
Lagging
indicator
Leading
indicator
Coincident
indicator
UNIT 2 TEST
A company's officers and Agency problem due to conflicting interests! Accounting
board of directors are selling manipulation by management in pursuit of higher stock-related
their stocks in the firm at higher compensation is an example of an agency problem.
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?
Pursuing individual interest over
client interests
Conflict between work and
personal affairs Agency problem
due to conflicting interests
Which subspecialty of finance Investments. Investments is the area of finance that seeks to create
primarily involves deciding which wealth in the future by deciding where to allocate money.
assets will create more wealth
and earn positive returns?
Accounting
Financial
institutions
Capital
structure
Investments
What is the primary goal of the To maximize owner wealth. The financial manager should make
financial manager of a firm? decisions based on the primary goal of maximizing owner
To minimize the asset holdings of wealth.
the firm To minimize the costs
of the firm
To maximize owner wealth
To maximize the manager's utility
, Utility is an economic term referring to the total satisfaction
Utility received from consuming goods and services. In other words, utility
is the happiness you gain from your decisions as a consumer.
What should be the main question Do the benefits of this investment outweigh the costs? For any
a firm asks when considering investment, you should expect to receive a benefit worth at
any investment least as much as the initial cost.
decision?
What is the primary aim of To maximize satisfaction from products purchased and services obtained
personal finance goals?
Maria and Mateo are setting To maximize individual utility 3 multiple choice options
financial goals. They decide that
they need to save $200 each
month to reach their goal of
taking their children to visit
their grandparents in Spain next
summer. What is the objective of
setting such a goal?
Unit 2, Module 1 - FINANCIAL
ENVIRONMENT (15%)
Which area of finance deals with Business finance 3 multiple choice options
sources of funding and the
capital structure of corporations
and seeks to increase the value
of a firm to its owners?
What are the main services Accepting a wide variety of deposits, offering investment products,
offered by financial institutions? providing loans, and brokering financial transactions
3 multiple choice options
UNIT 2 TEST
Which type of financial institution Investment institution. Investment institutions provide individuals and
is a mutual fund? firms access to financial markets.
Contractual
institution
Federal
institution
Depository
institution
Investment
institution
A mutual fund is an investment company that continually offers
investments and buys financial securities and instruments (usually
stocks or bonds) on behalf of investors. Mutual fund companies
A mutual fund
often have their own products or portfolios composed of
multiple stocks and bonds. The performance of the funds
determines the company's value. Even though the funds are a pool
of financial securities, investors normally do not have the same
rights that individual stockholders have.
,Which financial institution Pension funds specialize in retirement funds.
specializes in managing and
administering retirement
funds?
Pension funds
Private equity
Investment banks
Which type of economic indicator Lagging indicator 2 multiple choice options
is the consumer price index?
Lagging
indicator
Leading
indicator
Coincident
indicator
UNIT 2 TEST
A company's officers and Agency problem due to conflicting interests! Accounting
board of directors are selling manipulation by management in pursuit of higher stock-related
their stocks in the firm at higher compensation is an example of an agency problem.
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?
Pursuing individual interest over
client interests
Conflict between work and
personal affairs Agency problem
due to conflicting interests
Which subspecialty of finance Investments. Investments is the area of finance that seeks to create
primarily involves deciding which wealth in the future by deciding where to allocate money.
assets will create more wealth
and earn positive returns?
Accounting
Financial
institutions
Capital
structure
Investments
What is the primary goal of the To maximize owner wealth. The financial manager should make
financial manager of a firm? decisions based on the primary goal of maximizing owner
To minimize the asset holdings of wealth.
the firm To minimize the costs
of the firm
To maximize owner wealth
To maximize the manager's utility
, Utility is an economic term referring to the total satisfaction
Utility received from consuming goods and services. In other words, utility
is the happiness you gain from your decisions as a consumer.
What should be the main question Do the benefits of this investment outweigh the costs? For any
a firm asks when considering investment, you should expect to receive a benefit worth at
any investment least as much as the initial cost.
decision?
What is the primary aim of To maximize satisfaction from products purchased and services obtained
personal finance goals?
