Question 1

If a commercial bank in which funds you have deposited fails (goes out of business), the FDIC would give you back your money.

Accepted Answer

A) True 
 B)False

Question 2

If Jason Freidman succeeds in getting an unsecured bank loan, he won't be required to put up collateral.

Accepted Answer

A) True 
 B)False

Question 3

The Fed performs all of the following functions except:

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 4

The process of raising capital though the sale of a company's stock is called _____ financing.

Accepted Answer

A)  Equity 
B)  Debt 
C)  Stockholder 
D)  Exchange 
A)  Equity 
B)  Debt 
C)  Stockholder 
D)  Exchange

Question 5

SCENARIO-BASED
Sherry LeBlanc has been a teller at Community First Bank for two years and anticipates a promotion to main teller within the next few months. She’s worked hard at her job, knows her bank’s financial products well, and interacts with customers effectively. Community First Bank has been in business for 38 years, provides traditional banking services, and enjoys a good reputation in the local area.
-Community First offers demand deposits.

Accepted Answer

A) True 
 B)False

Question 6

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 7

The best-known stock market is the American Stock Exchange.

Accepted Answer

A) True 
 B)False

Question 8

Preferred stockholders bear the ultimate rewards and risks of ownership.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The distinction of _____ is usually an investment-analyst designation.

Accepted Answer

A)  Chartered Financial Analyst 
B)  Certified Financial Manager 
C)  Certified CashFlow Specialist 
D)  Certified Financial Planner 
A)  Chartered Financial Analyst 
B)  Certified Financial Manager 
C)  Certified CashFlow Specialist 
D)  Certified Financial Planner

Question 11

SCENARIO-BASED
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 12

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

Question 13

The Fed collects federal tax payments.

Accepted Answer

A) True 
 B)False

Question 14

How do finance companies differ from insurance companies

Accepted Answer

Because they don't accept deposits from

Question 15

A(n) _____ market is a period of large stock-price increases.

Accepted Answer

A)  bull 
B)  bear 
C)  deflationary 
D)  inflationary 
A)  bull 
B)  bear 
C)  deflationary 
D)  inflationary

Question 16

Owners of _____ stock bear the ultimate rewards and risks of ownership.

Accepted Answer

A)  cumulative preferred 
B)  convertible preferred 
C)  preferred 
D)  common 
A)  cumulative preferred 
B)  convertible preferred 
C)  preferred 
D)  common

Question 17

A finance professional holds the position of _____.

Accepted Answer

A)  stockbroker 
B)  investment analyst 
C)  portfolio manager 
D)  all of these 
A)  stockbroker 
B)  investment analyst 
C)  portfolio manager 
D)  all of these

Question 18

The distinction of _____ is usually a corporate-finance designation.

Accepted Answer

A)  Certified CashFlow Specialist 
B)  Certified Financial Manager 
C)  Certified Financial Planner 
D)  Chartered Financial Analyst 
A)  Certified CashFlow Specialist 
B)  Certified Financial Manager 
C)  Certified Financial Planner 
D)  Chartered Financial Analyst

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

What are the three basic functions of money

Accepted Answer

Money is (1) a mediu

If a commercial bank in which funds you have deposited fails (goes out of business), the FDIC would give you back your money.

If Jason Freidman succeeds in getting an unsecured bank loan, he won't be required to put up collateral.

The Fed performs all of the following functions except:

The process of raising capital though the sale of a company's stock is called _____ financing.

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

The best-known stock market is the American Stock Exchange.

Preferred stockholders bear the ultimate rewards and risks of ownership.

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

The distinction of _____ is usually an investment-analyst designation.

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 Fed collects federal tax payments.

How do finance companies differ from insurance companies

A(n) _____ market is a period of large stock-price increases.

Owners of _____ stock bear the ultimate rewards and risks of ownership.

A finance professional holds the position of _____.

The distinction of _____ is usually a corporate-finance designation.

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

What are the three basic functions of money

The Foundations of Business

Business Ethics and Social Responsibility

Business in a Global Environment

Selecting a Form of Business Ownership

The Challenges of Starting a Business

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Teamwork and Communications

Marketing: Providing Value to Customers

Product Design and Development

Operations Management in Manufacturing and Service Industries

The Role of Accounting in Business

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters

Exam 13: Managing Financial Resources

If a commercial bank in which funds you have deposited fails (goes out of business), the FDIC would give you back your money.

If Jason Freidman succeeds in getting an unsecured bank loan, he won't be required to put up collateral.

The Fed performs all of the following functions except:

The process of raising capital though the sale of a company's stock is called _____ financing.

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

The best-known stock market is the American Stock Exchange.

Preferred stockholders bear the ultimate rewards and risks of ownership.

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

The distinction of _____ is usually an investment-analyst designation.

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 Fed collects federal tax payments.

How do finance companies differ from insurance companies

A(n) _____ market is a period of large stock-price increases.

Owners of _____ stock bear the ultimate rewards and risks of ownership.

A finance professional holds the position of _____.

The distinction of _____ is usually a corporate-finance designation.

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

What are the three basic functions of money

The Foundations of Business

Business Ethics and Social Responsibility

Business in a Global Environment

Selecting a Form of Business Ownership

The Challenges of Starting a Business

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Teamwork and Communications

Marketing: Providing Value to Customers

Product Design and Development

Operations Management in Manufacturing and Service Industries

The Role of Accounting in Business

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters