Question 1

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.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Debt securities that require annual interest payments to bond holders are called _____.

Accepted Answer

A) bonds 
B) dividends 
C) preferred shares 
D) retained earnings 
A) bonds 
B) dividends 
C) preferred shares 
D) retained earnings

Question 4

_____, 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 5

Coordinated by a board of _____, the Federal Reserve System consists of 12 districts, each with a member?owned Federal Reserve Bank.

Accepted Answer

A) regents 
B) officers 
C) trustees 
D) governors 
A) regents 
B) officers 
C) trustees 
D) governors

Question 6

If you're a farmer who needs help clearing his fields and has plenty of food to spare, you might enter into a _____ transaction with a laborer who has time to clear fields but not enough food.

Accepted Answer

A) sharecropping 
B) barter 
C) tenant farming 
D) bargaining 
A) sharecropping 
B) barter 
C) tenant farming 
D) bargaining

Question 7

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

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

Question 8

How do finance companies differ from insurance companies?

Accepted Answer

Because they don't accept deposits from

Question 9

_____ 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 10

Price stability is among the three major goals of the Federal Reserve System.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) Preferred payouts 
B) Dividends 
C) Bonds 
D) Stock conversions 
A) Preferred payouts 
B) Dividends 
C) Bonds 
D) Stock conversions

Question 12

The Fed does all of the following _____.

Accepted Answer

A) helps businesses obtain loans 
B) prints currency 
C) distributes money 
D) destroys currency 
A) helps businesses obtain loans 
B) prints currency 
C) distributes money 
D) destroys currency

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Money market mutual funds pay interest to investors who have pooled funds to make short-term loans to businesses and government bodies.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Scenario-Based
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.
-Besides calculating the amount of funds that your business needs for a specified period of time, your financial plan should include a(n) _____.

Accepted Answer

A) business plan 
B) detailed strategy for getting needed funds 
C) marketing plan 
D) employee payment schedule 
A) business plan 
B) detailed strategy for getting needed funds 
C) marketing plan 
D) employee payment schedule

Question 17

Regardless of their choice of financing, Superior will generate a prospectus, or written offer to sell securities that provides useful information to prospective buyers.

Accepted Answer

A) True 
 B)False

Question 18

The Fed performs all of the following functions :

Accepted Answer

A) processing the paperwork involved in buying and selling government securities. 
B) collecting federal tax payments. 
C) regulating state banks. 
D) holding the U.S.Treasury's checking account. 
A) processing the paperwork involved in buying and selling government securities. 
B) collecting federal tax payments. 
C) regulating state banks. 
D) holding the U.S.Treasury's checking account.

Question 19

Under _____ systems, people trade goods and services directly for one another.

Accepted Answer

A) economic 
B) trade 
C) barter 
D) medium 
A) economic 
B) trade 
C) barter 
D) medium

Question 20

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.

Accepted Answer

A) annual report 
B) prospectus 
C) securities plan 
D) initial public offering 
A) annual report 
B) prospectus 
C) securities plan 
D) initial public offering

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

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

Debt securities that require annual interest payments to bond holders are called _____.

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

Coordinated by a board of _____, the Federal Reserve System consists of 12 districts, each with a member?owned Federal Reserve Bank.

If you're a farmer who needs help clearing his fields and has plenty of food to spare, you might enter into a _____ transaction with a laborer who has time to clear fields but not enough food.

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

How do finance companies differ from insurance companies?

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

Price stability is among the three major goals of the Federal Reserve System.

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

The Fed does all of the following _____.

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

Money market mutual funds pay interest to investors who have pooled funds to make short-term loans to businesses and government bodies.

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

Regardless of their choice of financing, Superior will generate a prospectus, or written offer to sell securities that provides useful information to prospective buyers.

The Fed performs all of the following functions :

Under _____ systems, people trade goods and services directly for one another.

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.

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

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

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

Debt securities that require annual interest payments to bond holders are called _____.

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

Coordinated by a board of _____, the Federal Reserve System consists of 12 districts, each with a member?owned Federal Reserve Bank.

If you're a farmer who needs help clearing his fields and has plenty of food to spare, you might enter into a _____ transaction with a laborer who has time to clear fields but not enough food.

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

How do finance companies differ from insurance companies?

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

Price stability is among the three major goals of the Federal Reserve System.

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

The Fed does all of the following _____.

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

Money market mutual funds pay interest to investors who have pooled funds to make short-term loans to businesses and government bodies.

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

Regardless of their choice of financing, Superior will generate a prospectus, or written offer to sell securities that provides useful information to prospective buyers.

The Fed performs all of the following functions :

Under _____ systems, people trade goods and services directly for one another.

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.

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