D076 OA
Question 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
Question 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
Question 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
Question 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.
Question 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
Question Which type of financial institution is a mutual fund?
Contractual institution
Depository institution
Investment institution
Federal institution
Answer Investment institution
Question Which financial institution specializes in managing and administering retirement funds?
Investment banks
Mutual funds
Pension funds
Private equity
Answer Pension funds
Question Which type of economic indicator is the consumer price index?
Question 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
Question 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
Question 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
Question 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.
Question 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
Question Which type of financial institution is a mutual fund?
Contractual institution
Depository institution
Investment institution
Federal institution
Answer Investment institution
Question Which financial institution specializes in managing and administering retirement funds?
Investment banks
Mutual funds
Pension funds
Private equity
Answer Pension funds
Question Which type of economic indicator is the consumer price index?
