Finance Skills for Managers - D076 Exam Questions With Complete Solutions

Finance Skills for Managers - D076 Exam
Questions With Complete Solutions


UNIT 2 || ||




What are the main services offered by financial institutions? -
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CORRECT ANSWER✔✔-Accepting a wide variety of deposits, offering
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investment products, providing loans, and brokering financial
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transactions


(Correct! Financial institutions such as banks, insurance companies,
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and mutual fund companies provide these services.)
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What is the main objective of personal financial goals? - CORRECT
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ANSWER✔✔-To maximize individual utility || || ||




(Correct! You set goals and act to increase your satisfaction or
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happiness by taking care of necessities and achieving priorities.)
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Which task does the financial manager of a firm perform that
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involves the issuance of new stocks and bonds? - CORRECT
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ANSWER✔✔-Making financing decisions || ||

,(Correct! Once investment decisions are made, a financial manager
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considers different possibilities of financing sources for the
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investments. This may include issuing new stocks and bonds.)
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Why is understanding the definition of finance important in
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managing personal finances? - CORRECT ANSWER✔✔-It helps
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individuals compare the costs and benefits of an action to determine
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whether to take that action.
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(Correct! Any financial decision should make sense in terms of its
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costs and benefits.)
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In which type of market would a company issue bonds or stocks for
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the first time? - CORRECT ANSWER✔✔-Primary market
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(Correct! This is the purpose of a primary market.)
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Which type of financial institution is a mutual fund? - CORRECT
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ANSWER✔✔-Investment institution ||




(Correct! Investment institutions provide individuals and firms access
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to financial markets.)
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, Which financial institution specializes in managing and administering
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retirement funds? - CORRECT ANSWER✔✔-Pension funds
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(Correct! Pension funds specialize in retirement funds.)
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Which type of economic indicator is the consumer price index? -
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CORRECT ANSWER✔✔-Lagging indicator || ||




(Correct! CPI usually changes after the economy as a whole
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changes.)


What does the term ethical refer to? - CORRECT ANSWER✔✔-The
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accepted standards of conduct that guide a person's behavior
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(Correct! Ethical refers to the accepted standards of conduct that
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guide a person's behavior.)
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A company's officers and board of directors are selling their stocks in
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the firm at higher prices due to false accounting reports that made
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the stock seem more valuable than it truly was. Which ethical issue
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is occurring in this situation? - CORRECT ANSWER✔✔-Agency
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problem due to conflicting interests
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