Question 1

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 2

_____ stock requires a corporation to pay all current and missed preferred dividends before paying any common stock dividends.

Accepted Answer

A) Convertible preferred 
B) Cumulative preferred 
C) Couched convertible 
D) Prospectus launched 
A) Convertible preferred 
B) Cumulative preferred 
C) Couched convertible 
D) Prospectus launched

Question 3

What is a venture capitalist?

Accepted Answer

A venture capitalist pools fun

Question 4

_____ funds pay interest to investors who have pooled funds to make short-term loan to businesses and government bodies.

Accepted Answer

A) Demand 
B) Commercial 
C) Money market mutual 
D) M-1 
A) Demand 
B) Commercial 
C) Money market mutual 
D) M-1

Question 5

Bartering means trading something for something else that another party wants.

Accepted Answer

A) True 
 B)False

Question 6

Collateral is something that you pledge in order to guarantee repayment of a loan.

Accepted Answer

A) True 
 B)False

Question 7

Finance companies can be characterized as deposit institutions because they provide traditional banking services.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Checking accounts that pay given sums to "payees" are called order deposits.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following occurred as a result of the subprime mortgage crisis?

Accepted Answer

A) American International Group (AIG), a giant insurance company, was on the brink of bankruptcy when the government stepped in and bailed it out with loans of $85 billion. 
B) The Federal National Mortgage Association (Freddie Mac) was bought by Merrill Lynch. 
C) Profits at most banks rose as people started saving more. 
D) The government provided $15,000 to homeowners who could not make their mortgage payments and so foreclosures declined. 
A) American International Group (AIG), a giant insurance company, was on the brink of bankruptcy when the government stepped in and bailed it out with loans of $85 billion. 
B) The Federal National Mortgage Association (Freddie Mac) was bought by Merrill Lynch. 
C) Profits at most banks rose as people started saving more. 
D) The government provided $15,000 to homeowners who could not make their mortgage payments and so foreclosures declined.

Question 11

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

Accepted Answer

A) sell bonds 
B) buy bonds 
C) sell treasury securities 
D) raise the prime rate 
A) sell bonds 
B) buy bonds 
C) sell treasury securities 
D) raise the prime rate

Question 12

Because it's a nondepository institution, Community First Bank will probably never offer trust services.

Accepted Answer

A) True 
 B)False

Question 13

Equity financing means raising needed capital by selling bonds.

Accepted Answer

A) True 
 B)False

Question 14

_____ were originally set up to encourage personal savings and provide mortgages to local home buyers.

Accepted Answer

A) Commercial banks 
B) Savings banks 
C) Credit unions 
D) Brokerage firms 
A) Commercial banks 
B) Savings banks 
C) Credit unions 
D) Brokerage firms

Question 15

Preferred stockholders bear the ultimate rewards and risks of ownership.

Accepted Answer

A) True 
 B)False

Question 16

The _____ rate is the interest rate paid by a Federal Reserve member bank when it borrows from another member bank to meet its reserve requirements.

Accepted Answer

A) discount 
B) federal funds 
C) open market 
D) mutual funds 
A) discount 
B) federal funds 
C) open market 
D) mutual funds

Question 17

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 18

_____ 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.

Accepted Answer

A) Prospectus 
B) Arbitrage 
C) Discriminate 
D) Insider 
A) Prospectus 
B) Arbitrage 
C) Discriminate 
D) Insider

Question 19

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

Accepted Answer

A) Venture capitalists 
B) Angels 
C) Institutional investors 
D) Brokers 
A) Venture capitalists 
B) Angels 
C) Institutional investors 
D) Brokers

Question 20

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

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

_____ stock requires a corporation to pay all current and missed preferred dividends before paying any common stock dividends.

What is a venture capitalist?

_____ funds pay interest to investors who have pooled funds to make short-term loan to businesses and government bodies.

Bartering means trading something for something else that another party wants.

Collateral is something that you pledge in order to guarantee repayment of a loan.

Finance companies can be characterized as deposit institutions because they provide traditional banking services.

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

Checking accounts that pay given sums to "payees" are called order deposits.

Which of the following occurred as a result of the subprime mortgage crisis?

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

Because it's a nondepository institution, Community First Bank will probably never offer trust services.

Equity financing means raising needed capital by selling bonds.

_____ were originally set up to encourage personal savings and provide mortgages to local home buyers.

Preferred stockholders bear the ultimate rewards and risks of ownership.

The _____ rate is the interest rate paid by a Federal Reserve member bank when it borrows from another member bank to meet its reserve requirements.

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

_____ 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.

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

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

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

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

_____ stock requires a corporation to pay all current and missed preferred dividends before paying any common stock dividends.

What is a venture capitalist?

_____ funds pay interest to investors who have pooled funds to make short-term loan to businesses and government bodies.

Bartering means trading something for something else that another party wants.

Collateral is something that you pledge in order to guarantee repayment of a loan.

Finance companies can be characterized as deposit institutions because they provide traditional banking services.

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

Checking accounts that pay given sums to "payees" are called order deposits.

Which of the following occurred as a result of the subprime mortgage crisis?

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

Because it's a nondepository institution, Community First Bank will probably never offer trust services.

Equity financing means raising needed capital by selling bonds.

_____ were originally set up to encourage personal savings and provide mortgages to local home buyers.

Preferred stockholders bear the ultimate rewards and risks of ownership.

The _____ rate is the interest rate paid by a Federal Reserve member bank when it borrows from another member bank to meet its reserve requirements.

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

_____ 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.

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

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

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