C214 - Topic 1 (Overview of Finance)
Question and answers verified to pass
2026
Finance is a subfield of economics
(true/false) - correct answer ✔False
Which of the following is not an example of firm capital?
- Cash
- Machinery
- Labor
- Financial Markets - correct answer ✔Financial Markets
Capital is defined as financial asset
(true/false) - correct answer ✔True
Corporate finance is devoted to understanding various types of financial instruments.
(true/false) - correct answer ✔False
Which of the following is an example of firm capital?
- Bank Deposits
- Cash
- The Firm's Worth
- None of these choices - correct answer ✔Cash
, Corporate finance focuses on the decision making by the management of the firm.
(true/false) - correct answer ✔True
What are the three important areas of finance discussed in this section?
- Corporate Finance, Investments, Banking/Financial Institutions
- Government Finance, WAAC, Ratios
- Neither - correct answer ✔Corporate Finance, Investments, Banking/Financial Institutions
Banks make money when interest rates they charge to borrowers are less than interest rates they pay
depositors.
(true/false) - correct answer ✔False
Stocks and bonds are two types of financial instruments.
(true/false) - correct answer ✔True
Stocks and bonds are two types of financial instruments.
(true/false) - correct answer ✔True
Stock represents ownership in a particular company.
(true/false) - correct answer ✔True
Companies can raise capital by issuing bonds or stocks.
(true/false) - correct answer ✔True
A stock is a debt instrument issued by corporations.
(true/false) - correct answer ✔False
Question and answers verified to pass
2026
Finance is a subfield of economics
(true/false) - correct answer ✔False
Which of the following is not an example of firm capital?
- Cash
- Machinery
- Labor
- Financial Markets - correct answer ✔Financial Markets
Capital is defined as financial asset
(true/false) - correct answer ✔True
Corporate finance is devoted to understanding various types of financial instruments.
(true/false) - correct answer ✔False
Which of the following is an example of firm capital?
- Bank Deposits
- Cash
- The Firm's Worth
- None of these choices - correct answer ✔Cash
, Corporate finance focuses on the decision making by the management of the firm.
(true/false) - correct answer ✔True
What are the three important areas of finance discussed in this section?
- Corporate Finance, Investments, Banking/Financial Institutions
- Government Finance, WAAC, Ratios
- Neither - correct answer ✔Corporate Finance, Investments, Banking/Financial Institutions
Banks make money when interest rates they charge to borrowers are less than interest rates they pay
depositors.
(true/false) - correct answer ✔False
Stocks and bonds are two types of financial instruments.
(true/false) - correct answer ✔True
Stocks and bonds are two types of financial instruments.
(true/false) - correct answer ✔True
Stock represents ownership in a particular company.
(true/false) - correct answer ✔True
Companies can raise capital by issuing bonds or stocks.
(true/false) - correct answer ✔True
A stock is a debt instrument issued by corporations.
(true/false) - correct answer ✔False
