PRINCIPLES OF FINANCE INSTRUCTOR SOLUTION
MANUAL CHAPER 1 ACTUAL EXAM WITH ALL 100
QUESTIONS AND VERIFIED ANSWERS GRADED A+ LATEST
VERSION 2024-2025.
Business finance - ANSWER-Looks at how managers apply financial principles to maximize firm value in a
risky environment.
Capital budgeting - ANSWER-Determining long-term assets to acquire to maximize shareholder value.
Investments - ANSWER-Study of products and processes to create individual and institutional portfolios
for wealth growth.
Financial markets and institutions - ANSWER-Study of firms and regulatory agencies overseeing the
financial system.
Comptroller (or controller) - ANSWER-Associated with less 'hands-on' management and more visionary
and strategic planning.
Financial planning - ANSWER-Considers past, present, and pro forma income statements, balance
sheets, and essential forecasting.
Cloud data storage - ANSWER-Provides cost advantages, specialized data protection, and maintenance
services.
United States Bureau of Labor Statistics (BLS) expectations - ANSWER-Expects plentiful and high paying
jobs using financial skills in the next decade.
Financial analyst hiring - ANSWER-Likely for government agencies, investment companies, and
corporations for regulatory oversight, financial reports, and forecasts.
, Primary market - ANSWER-Market for new securities; secondary market is for used securities.
Dealers in finance - ANSWER-Own the securities they trade; trading from their own portfolio.
Brokers in finance - ANSWER-Facilitate transactions, bringing together buyers and sellers in the market.
Macroeconomics - ANSWER-Study of allocation of scarce resources at the aggregate level.
Microeconomics - ANSWER-Study of allocation decisions by small or individual entities.
Economics - ANSWER-Examination of decisions taken together or in the aggregate.
Inflation - ANSWER-Economy-wide macroeconomic variable used in macro-forecasting models.
Unemployment - ANSWER-Economy-wide macroeconomic variable used in macro-forecasting models.
Economic growth - ANSWER-Economy-wide macroeconomic variable used in macro-forecasting models.
The money market - ANSWER-Market for short-term, low-risk, highly liquid, homogeneous securities.
Treasury bills - ANSWER-Short-term debt instruments issued by the federal government.
Commercial paper - ANSWER-Short-term, unsecured security issued by corporations and financial
institutions for short-term financing needs.
Treasury notes - ANSWER-US government debt instruments with maturities of 2, 3, 5, 7, or 10 years.
Long-term investments - ANSWER-Tend to have greater risk and greater expected returns.
MANUAL CHAPER 1 ACTUAL EXAM WITH ALL 100
QUESTIONS AND VERIFIED ANSWERS GRADED A+ LATEST
VERSION 2024-2025.
Business finance - ANSWER-Looks at how managers apply financial principles to maximize firm value in a
risky environment.
Capital budgeting - ANSWER-Determining long-term assets to acquire to maximize shareholder value.
Investments - ANSWER-Study of products and processes to create individual and institutional portfolios
for wealth growth.
Financial markets and institutions - ANSWER-Study of firms and regulatory agencies overseeing the
financial system.
Comptroller (or controller) - ANSWER-Associated with less 'hands-on' management and more visionary
and strategic planning.
Financial planning - ANSWER-Considers past, present, and pro forma income statements, balance
sheets, and essential forecasting.
Cloud data storage - ANSWER-Provides cost advantages, specialized data protection, and maintenance
services.
United States Bureau of Labor Statistics (BLS) expectations - ANSWER-Expects plentiful and high paying
jobs using financial skills in the next decade.
Financial analyst hiring - ANSWER-Likely for government agencies, investment companies, and
corporations for regulatory oversight, financial reports, and forecasts.
, Primary market - ANSWER-Market for new securities; secondary market is for used securities.
Dealers in finance - ANSWER-Own the securities they trade; trading from their own portfolio.
Brokers in finance - ANSWER-Facilitate transactions, bringing together buyers and sellers in the market.
Macroeconomics - ANSWER-Study of allocation of scarce resources at the aggregate level.
Microeconomics - ANSWER-Study of allocation decisions by small or individual entities.
Economics - ANSWER-Examination of decisions taken together or in the aggregate.
Inflation - ANSWER-Economy-wide macroeconomic variable used in macro-forecasting models.
Unemployment - ANSWER-Economy-wide macroeconomic variable used in macro-forecasting models.
Economic growth - ANSWER-Economy-wide macroeconomic variable used in macro-forecasting models.
The money market - ANSWER-Market for short-term, low-risk, highly liquid, homogeneous securities.
Treasury bills - ANSWER-Short-term debt instruments issued by the federal government.
Commercial paper - ANSWER-Short-term, unsecured security issued by corporations and financial
institutions for short-term financing needs.
Treasury notes - ANSWER-US government debt instruments with maturities of 2, 3, 5, 7, or 10 years.
Long-term investments - ANSWER-Tend to have greater risk and greater expected returns.
