<<FIN 100 Quiz 1,2,3,4,5.6,7,8,10-Strayer >> All
truecolorsReview Test Submission: Quiz 1
• Question 1
Finance has its origins in:
• Question 2
Successful businesses typically progress through a series of life-cycle stages—from the idea stage to exiting the business; these five stages include the:
Answer
• Question 3
The theory of ___________________ implies that information is quickly embedded in prices making it difficult for investors to "beat the market."
Answer
• Question 4
Two risk assets can be combined to lower the overall risk of a portfolio. This principle is commonly referred to as
• Question 5
____________________ provide the record-keeping mechanism for showing ownership of the financial instruments used in the flow of financial funds between savers and borrowers and record revenues, expenses, and profitability of organizations that produce and exchange goods and services.
Answer
• Question 6
Maximizing _____________________ is accomplished through effective financial planning and analysis, asset management, and the acquisition of financial capital.
Answer
• Question 7
Finance is:
• Question 8
_______________ is the study of how individuals prepare for financial emergencies, protect against premature death and the loss of property, and accumulate wealth over time.
Answer
• Question 9
The primary securities markets are
• Question 10
The primary goal of the financial manager of a profit-seeking organization is to:
• Question 11
_______________________ is the sum of an individual’s money, real assets, and financial assets or claims against others less the individual’s debt obligations.
Answer
• Question 12
The three functions of money are:
• Question 13
The price level of goods and services may be expressed as the ratio of _____________.
• Question 14
The only paper money of significance in the economy today is:
• Question 15
Money market funds are not included in which of the following definitions of the money supply?
• Question 16
Which of the following are not included in M1?
• Question 17
When it is a means of paying for goods and services and discharging debts, money is referred to as a:
• Question 18
_____________ is a short-term debt security sold by a business firm or financial institution to another business or institution where the seller agrees to buy back the security at a specified price and date.
• Question 19
Token coins are:
• Question 20
Paper money popularly called continentals was issued by the U.S. government to help finance which of the following wars?
Review Test Submission: Quiz 2
• Question 1
An organization that sells or markets new securities issued by businesses to individuals and institutional investors is called a (n)
• Question 2
The item on the liabilities and equity section of a bank’s balance sheet that represents the largest proportion of a typical bank’s assets is:
• Question 3
During the colonial period in the nation’s history, banks depended on:
• Question 4
The adequacy of capital for commercial banks as measured by regulatory authorities is:
• Question 5
Our system of national banks:
• Question 6
The holding-company device to control two or more commercial banks:
• Question 7
The principal assets of banks do not include:
• Question 8
An organization that sells shares in their firms to individuals and others and invests the proceeds in corporate and government securities is called a (n)
• Question 9
Legislation that provided for the separation of commercial banking and investment banking activities in the United States is called
• Question 10
The likelihood that borrowers are ill and would not be able to make interest and principal payments is an example of:
• Question 11
The dynamic actions of the Federal Reserve System:
• Question 12
The ___________________ conducts monetary policy for the twelve European countries that formed the European Monetary Union and adopted the euro as their common currency at the beginning of 1999.
• Question 13
A central bank serves the nation:
• Question 14
The __________________, passed in 1968, requires the clear explanation of consumer credit costs and garnishment procedures (taking wages or property by legal means) and prohibits overly high-priced credit transactions.
• Question 15
The Federal Open Market Committee:
• Question 16
The Board of Governors:
• Question 17
The Federal Open Market Committee:
• Question 18
____________________________ prohibits discrimination in the granting of credit on the basis of sex, marital status, race, color, religion, national origin, age, or receipt of public assistance.
• Question 19
The Board of Governors publishes ________________, which carries articles of current interest and offers a convenient source of the statistics compiled by the Fed.
• Question 20
The Truth in Lending Act:
Review Test Submission: Quiz 3
• Question 1
The federal government pays for the services it provides primarily through:
• Question 2
In our financial system, the money multiplier:
• Question 3
U.S. debt management is generally designed to:
• Question 4
In fall 2008, the U.S. Congress and President George W. Bush responded to the financial crisis with the passage of the _____________ in early October of that year.
• Question 5
Who made the following famous statement: "The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."
• Question 6
Budgetary deficits always have the effect of:
• Question 7
Special Drawing Rights are a form of reserve asset or paper gold created by the:
• Question 8
The government entity responsible for fiscal policy is:
• Question 9
The monetary base:
• Question 10
Bank reserves are increased when the Treasury:
• Question 11
The benefits of specialization of effort among nations depend primarily upon:
• Question 12
A statement by a bank guaranteeing acceptance and payment of a draft up to a stated amount is called a (n)
• Question 13
The firm that enters into a futures contract with respect to foreign exchange does so:
• Question 14
The _______ includes ALL international transactions.
• Question 15
The Board of Governors of the Federal Reserve System considers bankers’ acceptances used in international trade to be:
• Question 16
The manager of the foreign exchange office of a multinational corporation could, in anticipation of a decline in the value of currency of one of its foreign accounts:
• Question 17
The traveler’s letter of credit is usually used by:
• Question 18
An importer will generally try to avoid making payment for a purchase before the goods are actually shipped by:
• Question 19
In purchasing a claim to foreign exchange:
• Question 20
A draft that is not accompanied by any special documents and generally used when the exporter has confidence in the importer’s ability to meet the draft when presented is known as:
Review Test Submission: Quiz 4
• Question 1
Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years?
• Question 2
What would be the future value of a loan of $1,000 for two years if the bank offered a 10% interest rate compounded semiannually?
• Question 3
Consolidated Freightways is financing a new truck with a loan of $60,000 to be repaid in six annual end-of-year installments of $13,375. What annual interest rate is Consolidated Freightways paying?
• Question 4
The future value of $100 received today and deposited at 6 percent for four years is
• Question 5
For positive interest rates, the future value interest factor is
• Question 6
When compounding more than once a year, the true opportunity costs measure of the interest rate is indicated by the:
• Question 7
In future value or present value problems, unless stated otherwise, cash flows are assumed to be
• Question 8
For positive interest rates, the present value interest factor is
• Question 9
An annuity with an infinite life is called a (n)
• Question 10
For a given interest rate, as the length of time until receipt of the funds increases, the present value interest factor
Review Test Submission: Quiz 5
• Question 1
Dollar-denominated bonds that are issued in the United States by a foreign issuer are called:
• Question 2
A bond that does not permit future bond issues to be secured by any of the assets pledged as security to it is called a (n):
• Question 3
To determine risks of nondomestic bonds, a multinational corporation must consider all but which one of the following risks?
• Question 4
A document which is administered by a trustee, and includes in great detail the various provisions of the loan agreement is called the:
• Question 5
Which of the following is not a rating category used when rating bonds?
• Question 6
___________________ is often called a hybrid security.
• Question 7
A bond that allows investors to force the issuer to redeem the bond prior to maturity is called a:
• Question 8
In actual practice, most corporate bonds pay interest:
• Question 9
A (n) _____________ gives the bondholder a claim to specific assets (identified through serial numbers) such as railroad cars or airplanes.
• Question 10
Which of the following bond types would describe unsecured obligations that depend on the general credit strength of the corporation?
Course Prin Of Finance
Test Quiz 7
Question 1
For a given accounting period, which of the following is likely to represent primarily variable costs?
Question 2
The depreciation method currently used for tax purposes today is called the:
Question 3
The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:
Question 4
The financial statement that provides a snapshot view of the financial condition of a business at a point in time is the:
Question 5
Of the following forms of business organization, which have the advantage of limited liability but no stockholders?
Question 6
The U.S. federal government body that regulates the sale and listing of securities on U.S. financial markets is the:
Question 7
On the balance sheet, total assets minus net fixed assets equals:
Question 8
Of the following forms of business organization, which have stockholders with limited liability?
Question 9
Current liabilities would not include:
Question 10
The accrued liabilities of a firm are:
Question 11
If a firm's sale price per unit decreases, the firm's operating breakeven point will
Question 12
The method of evaluating the firm’s performance over time is known as:
Question 13
_____________ costs are a function of time (not sales) and are generally contractual.
Question 14
Ratios used to compare different firms at the same point in time belong to a category of analysis called:
Question 15
_____________ costs are a function of quantity sold, not time.
Question 16
The extent to which assets are financed by borrowed funds and other liabilities is indicated by:
Question 17
The equity multiplier is calculated as:
Question 18
Which one of the following ratios indicates the average number of days that sales are outstanding?
Question 19
The price/earnings ratio (P/E) is calculated as:
Question 20
The extent to which assets are used to support sales is indicated by which of the following ratios:
Review Test Submission: Quiz 7
Course Prin Of Finance
• Question 1
The depreciation method currently used for tax purposes today is called the:
• Question 2
Current liabilities would not include:
• Question 3
On the income statement, net profit after tax is defined as:
• Question 4
What would be recorded in the common stock account on the balance sheet if 20,000 shares are issued at a par value of $2 and the market value is $5?
• Question 5
The goal of a business should be:
• Question 6
The term ___________ conveys a relationship of equality between the assets of the business and the sources of funds for their acquisition.
• Question 7
The actual disbursement of cash is recorded in which of the following financial statements?
• Question 8
Of the following forms of business organization, which have the advantage of limited liability but no stockholders?
• Question 9
The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:
• Question 10
Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?
• Question 11
The equity multiplier is calculated as:
• Question 12
Cost-volume-profit analysis can be used to estimate the firm’s operating profits at different levels of:
• Question 13
The ability of a firm to meet its short-term debt obligations as they come due is indicated by which of the following ratios:
• Question 14
Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due?
• Question 15
Which one of the following financial statements reports a firm’s assets and the claims on assets?
• Question 16
The _______________ ratio is computed as earnings before interest and taxes divided by interest expense:
• Question 17
Which group of ratios might be most interesting to potential creditors of a firm?
• Question 18
If a firm's variable cost per unit increases, the firm's operating breakeven point will
• Question 19
A firm’s sales forecast is usually based on
• Question 20
The extent to which assets are financed by borrowed funds and other liabilities is indicated by:
Review Test Submission: Quiz 8
• Question 1
Taking advantage of unusual cash discounts or price bargains is an example of the:
• Question 2
A negative cash conversion cycle indicates that the
• Question 3
A mercantile credit bureau serves primarily as a (n):
• Question 4
A firm can reduce its cash conversion cycle by
• Question 5
Marketable securities are held primarily to meet:
• Question 6
A firm’s excess cash balance during a particular month could be best deployed if it were
• Question 7
The key input to the short-run financial planning process that is easiest to estimate is
• Question 8
The objective of managing current assets and liabilities is to
• Question 9
One type of investment that would not be suitable for marketable securities would be:
• Question 10
The current ratio concept is particularly useful in:
• Question 11
Commercial banks lend unsecured short-term funds in the following three basic ways:
• Question 12
Which of the following are typical financing strategies used by businesses?
• Question 13
If a firm actually sells its accounts receivable, the process is known as:
• Question 14
Compensating balances at a commercial bank are:
• Question 15
A short-term bank loan that is unsecured is referred to as:
• Question 16
A short-term promissory note sold by high-credit-quality corporations and is backed solely by the credit quality of the issuer is called:
• Question 17
The factoring of receivables:
• Question 18
Under ___________________ a factor pays the firm for its receivables before the account due date.
• Question 19
The most frequently cited justification for requiring a compensating balance is:
• Question 20
The cost of trade credit involving cash discounts as a form of short-term financing is:
• Question 1
An individual or organization that represents the bondholders to ensure the indenture’s provisions are respected by the bond issuer is called a (n):
• Question 2
When the market interest rate rises for a particular quality of bond, the price of the bond falls, which gives investors a new:
• Question 3
The largest annual supply of external funds for business corporations comes from issuance of which one of the following sources?
• Question 4
Which of the following bonds can be redeemed prior to maturity by the firm?
• Question 5
Which of the following risks would not be faced by investors in domestic bonds?
• Question 6
Which of the following bond types would describe unsecured obligations that depend on the general credit strength of the corporation?
• Question 7
Dollar-denominated bonds that are issued in the United States by a foreign issuer are called:
• Question 8
Which of the following types of stocks have the lowest risk to shareholders?
• Question 9
When the market interest rate rises above the coupon rate for a particular quality of bond and the bond price declines, the new expected yield is called the:
• Question 10
Which type of bond is currently prohibited from being issued in the United States?
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