,Module 1: Finance in business
Multiple-choice questions
1. Financial markets include:
A. bond market.
B. cash market.
C. share market.
*D. all of the above.
LO 1.1: Understanding finance, money and markets.
2. _______________ refers to the study of how money is managed.
A. marketing.
*B. finance.
C. taxation.
D. accounting.
LO 1.1: Understanding finance, money and markets.
3. The _____________ works out the best way to structure finances and make effective
financial decisions.
*A. Finance manager.
B. Controller.
C. CEO.
D. Risk manager.
LO 1.1: Understanding finance, money and markets.
4. The financial system includes:
A. financial regulation.
B. money.
C. financial markets.
*D. all of the above.
LO 1.1: Understanding finance, money and markets.
, Module 1: Finance in business
5. The importance of finance in society is driven by the economic principle of:
A. economic systems.
B. rationality.
*C. scarcity.
D. opportunity cost.
LO 1.1: Understanding finance, money and markets.
6. Increased regulation and oversight of the finance sector:
A. encourage consumers to obtain independent advice.
B. protect consumers.
C. build consumer confidence in the system.
*D. B and C.
LO 1.1: Understanding finance, money and markets.
7. Finances are of great economic and social importance. At the __________ level, they
drive the operation and performance of the economy.
*A. macro.
B. government.
C. micro.
D. all of the above.
LO 1.1: Understanding finance, money and markets.
8. At the ___________ level, finances influence the fiscal position of the nation and
influence living standards.
A. macro.
*B. government.
C. micro.
D. business entity.
LO 1.1: Understanding finance, money and markets.
9. For consumers, finance influences:
A. ability to make effective financial decisions.
B. accumulation of wealth over the long term.
C. profitability and living standards.
*D. A and B.
LO 1.1: Understanding finance, money and markets.
, Testbank to accompany: Finance essentials 1e by Kidwell et al.
10. Finance is used by businesses to:
A. operate on a daily basis.
B. start-up operations.
C. expand and grow the business.
*D. all of the above.
LO 1.1: Understanding finance, money and markets.
11. _________________ with standing in the community access financial markets and
financial institutions for funds.
A. small partnerships.
B. sole traders.
*C. large entities.
D. all of the above.
LO 1.1: Understanding finance, money and markets.
12. Entities wanting to raise debt finance from the Australian market have _________ to
choose from as methods of finance.
A. corporate bonds.
B. debentures.
C. notes.
*D. all of the above.
LO 1.1: Understanding finance, money and markets.
13. Which party of a bond pays the repayment of the face value at maturity?
*A. issuer.
B. owner.
C. financial intermediary.
D. none of the above.
LO 1.1: Understanding finance, money and markets.
14. _____________ are issued by all companies.
A. debentures.
B. bonds.
C. preference shares.
*D. ordinary shares.
LO 1.1: Understanding finance, money and markets.
Multiple-choice questions
1. Financial markets include:
A. bond market.
B. cash market.
C. share market.
*D. all of the above.
LO 1.1: Understanding finance, money and markets.
2. _______________ refers to the study of how money is managed.
A. marketing.
*B. finance.
C. taxation.
D. accounting.
LO 1.1: Understanding finance, money and markets.
3. The _____________ works out the best way to structure finances and make effective
financial decisions.
*A. Finance manager.
B. Controller.
C. CEO.
D. Risk manager.
LO 1.1: Understanding finance, money and markets.
4. The financial system includes:
A. financial regulation.
B. money.
C. financial markets.
*D. all of the above.
LO 1.1: Understanding finance, money and markets.
, Module 1: Finance in business
5. The importance of finance in society is driven by the economic principle of:
A. economic systems.
B. rationality.
*C. scarcity.
D. opportunity cost.
LO 1.1: Understanding finance, money and markets.
6. Increased regulation and oversight of the finance sector:
A. encourage consumers to obtain independent advice.
B. protect consumers.
C. build consumer confidence in the system.
*D. B and C.
LO 1.1: Understanding finance, money and markets.
7. Finances are of great economic and social importance. At the __________ level, they
drive the operation and performance of the economy.
*A. macro.
B. government.
C. micro.
D. all of the above.
LO 1.1: Understanding finance, money and markets.
8. At the ___________ level, finances influence the fiscal position of the nation and
influence living standards.
A. macro.
*B. government.
C. micro.
D. business entity.
LO 1.1: Understanding finance, money and markets.
9. For consumers, finance influences:
A. ability to make effective financial decisions.
B. accumulation of wealth over the long term.
C. profitability and living standards.
*D. A and B.
LO 1.1: Understanding finance, money and markets.
, Testbank to accompany: Finance essentials 1e by Kidwell et al.
10. Finance is used by businesses to:
A. operate on a daily basis.
B. start-up operations.
C. expand and grow the business.
*D. all of the above.
LO 1.1: Understanding finance, money and markets.
11. _________________ with standing in the community access financial markets and
financial institutions for funds.
A. small partnerships.
B. sole traders.
*C. large entities.
D. all of the above.
LO 1.1: Understanding finance, money and markets.
12. Entities wanting to raise debt finance from the Australian market have _________ to
choose from as methods of finance.
A. corporate bonds.
B. debentures.
C. notes.
*D. all of the above.
LO 1.1: Understanding finance, money and markets.
13. Which party of a bond pays the repayment of the face value at maturity?
*A. issuer.
B. owner.
C. financial intermediary.
D. none of the above.
LO 1.1: Understanding finance, money and markets.
14. _____________ are issued by all companies.
A. debentures.
B. bonds.
C. preference shares.
*D. ordinary shares.
LO 1.1: Understanding finance, money and markets.
