Exam 13: Managing Financial Resources

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) _____.

Because they don't accept deposits from individuals or provide traditional banking services, _____ are characterized as nondeposit institutions.

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. -If, at some point in the future, Superior offers corporate bonds, it will be practicing a form of equity financing.

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.

The Fed collects federal tax payments.

The rate of interest that the Fed charges member banks is called the market rate.

Explain the four ways in which the Fed functions as the U.S. government's banker.

A business gets _____ credits from its suppliers.

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

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

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

As a loan officer at a commercial bank, you must determine the _____ rate that you'll charge your best customers.

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

In the process of becoming a publicly-traded corporation, a company needs the help of a commercial bank.

Large companies need finance professionals to do all of the following except _____.

For financial transactions to occur, money must _____.

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

Debt financing means raising needed capital by selling bonds.

From an entry-level position-usually called analyst-the finance professional may advance to the position of junior analyst.

The FDIC regulates banks and insures deposits in member banks up to $250,000.