Exam 13: Managing Financial Resources

The rate of interest that the Fed charges member banks is called the market rate.

The money multiplier allows banks to expand the money supply.

If your company does well,stockholders may benefit either through appreciation in the value of their stock or through distributed earnings called _____.

_____ are willing to invest in start-up ventures that they believe will succeed.

Which of the following is not true of the SEC (Securities Exchange Commission)?

A financial manager determines when a company will repay the money it's borrowed.

A business gets _____ credits from its suppliers.

Savings banks are the most common financial institutions in the United States.

You and a friend want to open new pet grooming and pet services shop. Once established, you intend to open a second store in a larger town 20 miles away. If store number two is a success, you plan to start franchising your company. -During the first year of operation,_____ will be among your most valuable financial skills.

A(n)_____ is a written offer to sell securities,describing the business and operations of the issuer,listing its officers,providing financial information,disclosing pending litigation,and stating the proposed use of funds from the sale.

Large companies need finance professionals to do all of the following except _____.

_____ pool funds from private and institutional sources and invest them in businesses with strong growth potential.

In the investment industry,finance professionals can be stockbrokers.

If the Fed wants to decrease the money supply,it can _____.

Treasury bills mature in one year.

For money to be useful,it must be difficult to counterfeit.

Angels are usually wealthy individuals willing to invest in start-up ventures that they believe will succeed.

_____ trading is the illegal buying or selling of securities by a firm's officers or directors or anyone else taking advantage of valuable information about a company before it's made public.

If you are seeking a bank loan to start a small business,your banker will want to see a _____.

Cash-flow management means monitoring cash inflows and outflows to ensure that a company has sufficient but not excessive cash on hand.