Question 1

In deciding to raise needed capital for her company through the sale of stock,Karen Tagget has opted for _____ financing.

Accepted Answer

A) debt 
B) equity 
C) capital 
D) stakeholder 
A) debt 
B) equity 
C) capital 
D) stakeholder B

Question 2

Privately held for 18 years, Superior Chemicals Inc. has finally decided to go public. The owners are in the process of deciding whether to use debt or equity financing to finance growth after the initial public offering
-If Superior sells stock,it will be opting for debt financing.

Accepted Answer

A) True 
 B)False  False

Question 3

If Jason Freidman succeeds in getting an unsecured bank loan,he won't be required to put up collateral.

Accepted Answer

A) True 
 B)False  True

Question 4

Owners of _____ stock bear the ultimate rewards and risks of ownership.

Accepted Answer

A) cumulative preferred 
B) convertible preferred 
C) preferred 
D) common 
A) cumulative preferred 
B) convertible preferred 
C) preferred 
D) common

Question 5

The process of raising capital though the sale of a company's stock is called _____ financing.

Accepted Answer

A) Equity 
B) Debt 
C) Stockholder 
D) Exchange 
A) Equity 
B) Debt 
C) Stockholder 
D) Exchange

Question 6

You work in customer service at a(n)_____,which is the most common type of financial institution in the U.S.

Accepted Answer

A) savings bank 
B) commercial bank 
C) insurance company 
D) credit union 
A) savings bank 
B) commercial bank 
C) insurance company 
D) credit union

Question 7

The rate that banks charge their best customers is called the maturity rate.

Accepted Answer

A) True 
 B)False

Question 8

Liabilities are debts owed by a company to outside parties.

Accepted Answer

A) True 
 B)False

Question 9

A(n)_____ market is a period of large stock-price increases.

Accepted Answer

A) bull 
B) bear 
C) deflationary 
D) inflationary 
A) bull 
B) bear 
C) deflationary 
D) inflationary

Question 10

Your _____ schedule is the schedule by which you'll reduce the balance of your debt.

Accepted Answer

A) interest and depreciation 
B) maturity 
C) balance-abatement 
D) amortization 
A) interest and depreciation 
B) maturity 
C) balance-abatement 
D) amortization

Question 11

Loans from family and friends are the most important source of funds for any new business.

Accepted Answer

A) True 
 B)False

Question 12

When stock prices are rising,we call the market a bear market;when prices are following we call the market a bull market.

Accepted Answer

A) True 
 B)False

Question 13

To bank at a(n)_____,you must be linked to a particular group.

Accepted Answer

A) credit union 
B) insurance company 
C) brokerage firm 
D) mutual fund 
A) credit union 
B) insurance company 
C) brokerage firm 
D) mutual fund

Question 14

If your bank does not ask you to put up collateral,you're getting a(n)_____.

Accepted Answer

A) low interest rate 
B) line of credit 
C) unsecured loan 
D) amortized schedule 
A) low interest rate 
B) line of credit 
C) unsecured loan 
D) amortized schedule

Question 15

_____,which lists the stocks of 500 large U.S.companies,is a broad measure of stock performance.

Accepted Answer

A) The Dow Jones Industrial Average 
B) The Commodities Board 
C) Standard & Poor's Composite Index 
D) Moody's Highs and Lows 
A) The Dow Jones Industrial Average 
B) The Commodities Board 
C) Standard & Poor's Composite Index 
D) Moody's Highs and Lows

Question 16

Debt financing means raising needed capital by selling bonds.

Accepted Answer

A) True 
 B)False

Question 17

Sherry LeBlanc has been a teller at Community First Bank for two years and anticipates a promotion to main teller within the next few months. She’s worked hard at her job, knows her bank’s financial products well, and interacts with customers effectively. Community First Bank has been in business for 38 years, provides traditional banking services, and enjoys a good reputation in the local area.
-Community First offers demand deposits.

Accepted Answer

A) True 
 B)False

Question 18

The _____ is a government agency that regulates banks and insures deposits in member banks up to $250,000.

Accepted Answer

A) FBI 
B) IRA 
C) FDIC 
D) MDIC 
A) FBI 
B) IRA 
C) FDIC 
D) MDIC

Question 19

Treasury _____ mature in one year.

Accepted Answer

A) notes 
B) bills 
C) bonds 
D) stocks 
A) notes 
B) bills 
C) bonds 
D) stocks

Question 20

Which of the following is an approach used by the Fed to lessen the likelihood of inflation?

Accepted Answer

A) Lower the reserve requirement for banks so they can loan out more money. 
B) Raise the discount rate charged to banks that borrow funds from the Fed. 
C) Buy bonds on the open market to increase the amount of money banks have to lend. 
D) Lower the federal funds rate charged to banks who want to borrow from other banks. 
A) Lower the reserve requirement for banks so they can loan out more money. 
B) Raise the discount rate charged to banks that borrow funds from the Fed. 
C) Buy bonds on the open market to increase the amount of money banks have to lend. 
D) Lower the federal funds rate charged to banks who want to borrow from other banks.

In deciding to raise needed capital for her company through the sale of stock,Karen Tagget has opted for _____ financing.

Privately held for 18 years, Superior Chemicals Inc. has finally decided to go public. The owners are in the process of deciding whether to use debt or equity financing to finance growth after the initial public offering -If Superior sells stock,it will be opting for debt financing.

If Jason Freidman succeeds in getting an unsecured bank loan,he won't be required to put up collateral.

Owners of _____ stock bear the ultimate rewards and risks of ownership.

The process of raising capital though the sale of a company's stock is called _____ financing.

You work in customer service at a(n)_____,which is the most common type of financial institution in the U.S.

The rate that banks charge their best customers is called the maturity rate.

Liabilities are debts owed by a company to outside parties.

A(n)_____ market is a period of large stock-price increases.

Your _____ schedule is the schedule by which you'll reduce the balance of your debt.

Loans from family and friends are the most important source of funds for any new business.

When stock prices are rising,we call the market a bear market;when prices are following we call the market a bull market.

To bank at a(n)_____,you must be linked to a particular group.

If your bank does not ask you to put up collateral,you're getting a(n)_____.

_____,which lists the stocks of 500 large U.S.companies,is a broad measure of stock performance.

Debt financing means raising needed capital by selling bonds.

The _____ is a government agency that regulates banks and insures deposits in member banks up to $250,000.

Treasury _____ mature in one year.

Which of the following is an approach used by the Fed to lessen the likelihood of inflation?

The Foundations of Business

Entrepreneurship

Selecting a Form of Business Ownership

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

The Role of Accounting in Business

Teamwork and Communications

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters

Exam 13: Managing Financial Resources

In deciding to raise needed capital for her company through the sale of stock,Karen Tagget has opted for _____ financing.

Privately held for 18 years, Superior Chemicals Inc. has finally decided to go public. The owners are in the process of deciding whether to use debt or equity financing to finance growth after the initial public offering -If Superior sells stock,it will be opting for debt financing.

If Jason Freidman succeeds in getting an unsecured bank loan,he won't be required to put up collateral.

Owners of _____ stock bear the ultimate rewards and risks of ownership.

The process of raising capital though the sale of a company's stock is called _____ financing.

You work in customer service at a(n)_____,which is the most common type of financial institution in the U.S.

The rate that banks charge their best customers is called the maturity rate.

Liabilities are debts owed by a company to outside parties.

A(n)_____ market is a period of large stock-price increases.

Your _____ schedule is the schedule by which you'll reduce the balance of your debt.

Loans from family and friends are the most important source of funds for any new business.

When stock prices are rising,we call the market a bear market;when prices are following we call the market a bull market.

To bank at a(n)_____,you must be linked to a particular group.

If your bank does not ask you to put up collateral,you're getting a(n)_____.

_____,which lists the stocks of 500 large U.S.companies,is a broad measure of stock performance.

Debt financing means raising needed capital by selling bonds.

The _____ is a government agency that regulates banks and insures deposits in member banks up to $250,000.

Treasury _____ mature in one year.

Which of the following is an approach used by the Fed to lessen the likelihood of inflation?

The Foundations of Business

Entrepreneurship

Selecting a Form of Business Ownership

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

The Role of Accounting in Business

Teamwork and Communications

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters