What area of finance involves Investments
deciding which assets to invest in
to create wealth in the future?
-Investment banking
-Investments
-Organizational finance
-Financial institutions
Hannah is the financial manager Making a financing decision
of a firm. A project that she has
recommended has been
approved and will cost $5
million.
Since the company does not have
enough cash on reserve,
Hannah must figure out how to
raise enough money to start
the project. She can choose
whether to issue new bonds,
new stocks, a mortgage loan, or
some combination of those
options.
What task is Hannah performing in
this scenario?
-Making a financing decision
-Making an investment decision
-Managing working capital
-Managing financial investments
,Maria and Mateo are setting To maximize individual utility
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?
-To make personal finances
predictable
-To maximize individual utility
-To set priorities in personal finances
-To minimize personal expenses
Which professional works with Financial planner
individuals to help them achieve
their financial goals?
-Commercial banker
-Corporate financial analyst
-Financial planner
-Private equity manager
Omar is about to purchase a new Financing goal
car for
$30,000. He knows he wants to buy
the car, but he is still trying to
decide how to pay for it. He has
barely over $30,000 in his bank
account. He can either take out
an auto loan from a bank or use
a mix of cash and an auto loan.
In this scenario, what is Omar doing?
-Assessing a financial goal
-Budgeting
-Investing to achieve a goal
-Financing a goal
Which responsibility is a focus of To protect investors
the U.S. Securities and
Exchange Commission?
-To provide liquidity
-To protect investors
-To raise interest rates
-To regulate inflation
Which type of financial institution Investment institutions
provides individuals and firms
access to financial markets?
-Depository institutions
-Credit institutions
-Investment institutions
-Contractual savings institutions
Which financial institution includes Private equity
, entities that receive money from
institutional investors and
wealthy individuals to buy
troubled companies to improve
them and earn returns by
selling them or going public?
-Credit union
-Mutual fund
-Commercial bank
-Private equity