Exam 13: Managing Financial Resources

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

Equity financing means raising needed capital by selling bonds.

Mary Matthews is creating a(n) _____ that calculates the amount of funds that her company needs for a specified period of time.

The federal government requires anyone who sells securities to be licensed.

Capital credit is extended to a business by its suppliers.

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

All of the following are among the Fed's three major goals except _____.

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

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

If your bank does not ask you to put up collateral, you're getting a(n)_____.

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

_____ financing means raising needed capital by selling bonds.

A prospectus is a written offer to sell securities that provides useful information to prospective buyers.

What is a savings bank?

All of the following are depository institutions except _____.

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

A finance professional may advance from the position of _____ analyst to a managerial position.

As founder and CEO of a growing public company, you are considering issuing shares of stock to finance an expansion. All of the following statements about stock are true except:

Most positions in finance fall into one of three broad areas, one of which is corporate finance.

The DJIA (Dow Jones Industrial Average) is the total value of a "market basket" of 30 large companies headquartered in the United States.