Exam 3: Fundamentals of Economics and Types of Markets

Easy Insurance is a new business that offers property and casualty and life and health insurance to customers. Easy Insurance ismost likely a

Which statement demonstrates the concept of uniqueness as it relates to money?

Mogul Gaming negotiates a written contract with its main supplier to pay half of its invoice within 30 days and the other half within 90 days. This agreement is most likely ________, a form of ________.

Ahlai works for the Fed and is conducting a seminar about money supply. An attendee says he thinks people borrow too much money and suggests that the Fed remove half of the money in the money supply. What would be Ahlai'sbest response regarding the outcome if the Fed followed this advice?

After paying its stockholders, a construction company decided to use the rest of its earnings to buy more buildings. What type of financing is this?

Danyou is hired to work for Bristol Motors. Bristol is a large corporation that even has its own financial institution. Danyou does some research on the financial institution and learns that he can get all the same services he has at his current bank, albeit with slightly higher interest rates. Bristol's financial institution ismost likely a(n)

As substitutes for bank loans, ________ consists of unsecured, short-term promissory notes over $100,000 issued by large banks, corporations, insurance companies, pension funds, public utilities, and state and local governments.

Samurai Generators makes a purchase of resistors for next quarter's production run. Its supplier emails an invoice with the total amount owed. Next to the total is a reminder that states, "2/10, net 30." What would happen if Samurai pays its bill the next day?

The length of time for which the seller extends credit to the buyer is known as the

Marsh received a $50,000 inheritance when his aunt passed away last week and decides to deposit the money in a new account at his bank. He wants to make significant interest on his deposit, but also wants the ability to write checks. What is his best option?

Which function of money is apparent when it makes economic transactions easier and eliminates the need to barter?

Deluge Writing is preparing to launch a new product. The CFO has been asked to present a financing plan to the Board. What would be hisbest approach if he wants to keep the company from being heavily leveraged?

Alfred received a bonus and didn't need it for at least a year, so he wanted to put in somewhere where it would earn more interest than a savings account. What is thebest option for Alfred?

Peer-to-peer lending, which allows individuals to borrow and lend money while bypassing financial institutions, is also called

BlueDot Training just finished paying annual dividends to its stockholders. It uses the remaining money to fund the purchase of the acquisition of a smaller competitor. Thisbest describes an example of

Brazen Manufacturing is planning to build a new factory in 5 years. It is also planning to expand sales outside of the United States in 10 years. The financial management team is preparing a report that will estimate how cash will enter and exit the firm during the time leading up to the two milestones. What type of report is the financial management team preparing?

Carol is a financial manager at a large bank. As part of the bank's community outreach efforts, Carol conducts regular seminars for business owners. Her last presentation was designed for individuals who are considering opening their own business. She wants to help them to understand the four reasons a company might need financing. List the reasons and provide an example of each for support.

Meister Mixers is planning to build a new production facility next year. The owners visit their bank to borrow the money needed to begin the construction process. Which of the reasons a firm borrows money does thisbest demonstrate?

A financial plan is from one year to five years; anything longer is a long-term forecast.

A(n) ________ is a firm's strategy for reaching its financial goals.