Question 1

If Kent Pulowski wants to open a personal retirement account to save money tax free until his retirement,he should look into a(n)_____.

Accepted Answer

A) pension fund 
B) individual retirement account (IR
A)  
C) money market account 
D) mutual fund 
A) pension fund 
B) individual retirement account (IR
A)  
C) money market account 
D) mutual fund

Question 2

The _____ is the amount by which an initial bank deposit will expand the money supply.

Accepted Answer

A) money multiplier 
B) money inflator 
C) money magnifier 
D) credit inflator 
A) money multiplier 
B) money inflator 
C) money magnifier 
D) credit inflator

Question 3

_____ is the best-known over-the-counter electronic exchange system.

Accepted Answer

A) NASDAQ (National Association of Securities Dealers Automated Quotations) 
B) The Chicago Board of Trade 
C) The New York Stock Exchange 
D) eBay 
A) NASDAQ (National Association of Securities Dealers Automated Quotations) 
B) The Chicago Board of Trade 
C) The New York Stock Exchange 
D) eBay

Question 4

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,at some point in the future,Superior offers corporate bonds,it will be practicing a form of equity financing.

Accepted Answer

A) True 
 B)False

Question 5

For money to be useful,it must posses all of the following properties except _____.

Accepted Answer

A) divisibility 
B) portability 
C) durability 
D) tangibility 
A) divisibility 
B) portability 
C) durability 
D) tangibility

Question 6

Because of the money-multiplier effect,the Fed changes reserve requirements _____.

Accepted Answer

A) only rarely 
B) often 
C) every month 
D) every six months 
A) only rarely 
B) often 
C) every month 
D) every six months

Question 7

As founder and CEO of a growing public company,you are considering issuing shares of stock to finance an expansion.All of the following statements about stock are true except:

Accepted Answer

A) money obtained from the sale of stock does not have to be paid back. 
B) if you issue stock instead of incurring debt to finance your expansion,you avoid paying interest. 
C) if you issue stock to the public,your percentage ownership of the company will not change. 
D) if the company does well,you could distribute some of its earnings by paying dividends. 
A) money obtained from the sale of stock does not have to be paid back. 
B) if you issue stock instead of incurring debt to finance your expansion,you avoid paying interest. 
C) if you issue stock to the public,your percentage ownership of the company will not change. 
D) if the company does well,you could distribute some of its earnings by paying dividends.

Question 8

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
-Buyers of Superior preferred stock will enjoy safer investments but not the upside potential of investment in the company's common stock.

Accepted Answer

A) True 
 B)False

Question 9

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
-Superior will make its IPO (Initial Public Offering)in the primary market.

Accepted Answer

A) True 
 B)False

Question 10

_____ operations are the Fed's main tool in controlling the money supply and influencing interest rates.

Accepted Answer

A) Open market 
B) Multimarket 
C) Mutual fund 
D) Carryover 
A) Open market 
B) Multimarket 
C) Mutual fund 
D) Carryover

Question 11

A bond is a form of earnings distributed to a firm's stockholders.

Accepted Answer

A) True 
 B)False

Question 12

_____ stock gives its owner the option of exchanging it for common stock.

Accepted Answer

A) Convertible preferred 
B) Dividend payable 
C) Cumulative preferred 
D) Bonded 
A) Convertible preferred 
B) Dividend payable 
C) Cumulative preferred 
D) Bonded

Question 13

Thrift institutions were originally set up to encourage personal savings.

Accepted Answer

A) True 
 B)False

Question 14

The first step in becoming a publicly-traded corporation is to introduce an initial public offering (IPO).

Accepted Answer

A) True 
 B)False

Question 15

The _____ is by far the most widely reported market index.

Accepted Answer

A) Dow Jones Industrial Average 
B) New York Stock Index 
C) American Stock Index 
D) NASDAQ Report 
A) Dow Jones Industrial Average 
B) New York Stock Index 
C) American Stock Index 
D) NASDAQ Report

Question 16

A finance student who's completed undergraduate studies usually furthers his or her education by pursuing a(n)_____.

Accepted Answer

A) Masters in Finance 
B) CPA (certified public accountant) 
C) MBA (master's in business administration) 
D) finance-planning certificate 
A) Masters in Finance 
B) CPA (certified public accountant) 
C) MBA (master's in business administration) 
D) finance-planning certificate

Question 17

About 10 years ago you founded an energy company that operates as a privately-held corporation with only limited stock ownership.You are considering selling stock to the public for the first time through an initial public offering.All of the following are disadvantages for taking a company public except:

Accepted Answer

A) going public is costly. 
B) financial reports would have to be made available to the public. 
C) you would get an influx of cash that doesn't have to be paid back. 
D) you would be responsible to shareholders who would expect favorable short-term performance. 
A) going public is costly. 
B) financial reports would have to be made available to the public. 
C) you would get an influx of cash that doesn't have to be paid back. 
D) you would be responsible to shareholders who would expect favorable short-term performance.

Question 18

If you're starting a new business and you borrow money from family members,you should be sure to _____.

Accepted Answer

A) designate lenders as part owners 
B) draw up a formal loan agreement 
C) borrow as little as possible 
D) repay the money in the first year 
A) designate lenders as part owners 
B) draw up a formal loan agreement 
C) borrow as little as possible 
D) repay the money in the first year

Question 19

You own a share of stock in Hershey Foods.In reviewing the stock information in the Wall Street Journal,you note that Hershey's PE ratio is 19.The PE ratio indicates:

Accepted Answer

A) the price Hershey Foods stock is trading at now. 
B) the amount investors are willing to pay for every $1 of Hershey Food's earnings. 
C) the percentage of Hershey Food's earnings paid out in dividends. 
D) the amount you can expect to earn on the stock. 
A) the price Hershey Foods stock is trading at now. 
B) the amount investors are willing to pay for every $1 of Hershey Food's earnings. 
C) the percentage of Hershey Food's earnings paid out in dividends. 
D) the amount you can expect to earn on the stock.

Question 20

All of the following fall into one of three broad areas of finance except _____.

Accepted Answer

A) commercial banking 
B) corporate finance 
C) investment industry 
D) individual finance 
A) commercial banking 
B) corporate finance 
C) investment industry 
D) individual finance

If Kent Pulowski wants to open a personal retirement account to save money tax free until his retirement,he should look into a(n)_____.

The _____ is the amount by which an initial bank deposit will expand the money supply.

_____ is the best-known over-the-counter electronic exchange system.

For money to be useful,it must posses all of the following properties except _____.

Because of the money-multiplier effect,the Fed changes reserve requirements _____.

As founder and CEO of a growing public company,you are considering issuing shares of stock to finance an expansion.All of the following statements about stock are true except:

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 -Superior will make its IPO (Initial Public Offering)in the primary market.

_____ operations are the Fed's main tool in controlling the money supply and influencing interest rates.

A bond is a form of earnings distributed to a firm's stockholders.

_____ stock gives its owner the option of exchanging it for common stock.

Thrift institutions were originally set up to encourage personal savings.

The first step in becoming a publicly-traded corporation is to introduce an initial public offering (IPO).

The _____ is by far the most widely reported market index.

A finance student who's completed undergraduate studies usually furthers his or her education by pursuing a(n)_____.

If you're starting a new business and you borrow money from family members,you should be sure to _____.

You own a share of stock in Hershey Foods.In reviewing the stock information in the Wall Street Journal,you note that Hershey's PE ratio is 19.The PE ratio indicates:

All of the following fall into one of three broad areas of finance except _____.

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

If Kent Pulowski wants to open a personal retirement account to save money tax free until his retirement,he should look into a(n)_____.

The _____ is the amount by which an initial bank deposit will expand the money supply.

_____ is the best-known over-the-counter electronic exchange system.

For money to be useful,it must posses all of the following properties except _____.

Because of the money-multiplier effect,the Fed changes reserve requirements _____.

As founder and CEO of a growing public company,you are considering issuing shares of stock to finance an expansion.All of the following statements about stock are true except:

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 -Superior will make its IPO (Initial Public Offering)in the primary market.

_____ operations are the Fed's main tool in controlling the money supply and influencing interest rates.

A bond is a form of earnings distributed to a firm's stockholders.

_____ stock gives its owner the option of exchanging it for common stock.

Thrift institutions were originally set up to encourage personal savings.

The first step in becoming a publicly-traded corporation is to introduce an initial public offering (IPO).

The _____ is by far the most widely reported market index.

A finance student who's completed undergraduate studies usually furthers his or her education by pursuing a(n)_____.

If you're starting a new business and you borrow money from family members,you should be sure to _____.

You own a share of stock in Hershey Foods.In reviewing the stock information in the Wall Street Journal,you note that Hershey's PE ratio is 19.The PE ratio indicates:

All of the following fall into one of three broad areas of finance except _____.

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