D076 EXAM-COMPLETE QUESTIONS AND ANSWERS| REAL
ACTUAL EXAM-LATEST UPDATE|RATED 100%
CORRECT!!ALREADY GRADED A+ | GUARANTEED PASS!!
Finance - (answers)The study of managing and allocating funds at the personal or business
level.
Accounting - (answers)The system of recording, reporting, and summarizing past financial
information and transactions.
Capital - (answers)A financial asset that can be used by a firm or individual. Examples of
capital may be machinery or cash held by a firm.
Subspecialties of Finance - (answers)1. Business finance
2. Investments
3. Financial institutions
Business finance - (answers)An area of finance that deals with sources of funding, the capital
structure of corporations, the actions that managers take to increase the value of the firm to
its owners, and the tools and analysis used to allocate financial resources.
Capital Structure - (answers)The mixture of debt and equity used to finance a firm.
Investments - (answers)An area of finance that involves deciding which assets to invest in to
create wealth in the future.
Asset Pricing - (answers)The process of valuing assets.
Current Market Value - (answers)What someone would pay right now for an asset.
,Financial Institutions - (answers)An area of finance that includes firms or organizations that
exist to accept a wide variety of deposits, to offer investment products to individuals and
businesses, to provide loans, or to broker financial transactions.
Utility - (answers)The total satisfaction received from consuming goods and services.
Publicly Traded Firm - (answers)Firms that have issued shares to the public.
Privately Held Company - (answers)Firms that have not issued shares to the public where the
ownership rights are privately held.
What are 3 main tasks of a Financial Manager - (answers)1. Making investment decisions
2. Making financing decisions
3. Managing working capital
Research & Development - (answers)The business function responsible for improving and
developing services and products.
Cash Management - (answers)Managing the day-to-day finance operations of a firm.
Tax Strategies - (answers)Methods used to minimize the amount of taxes a business pays.
Financial Policy Implementation - (answers)Incorporating new finance ideas within a firm.
Venture Capitalists - (answers)Professional managers of investment capital that typically
invest in very young new ventures.
Harvest - (answers)Generating cash or stock from the sales or IPO of companies in the
portfolio of investments.
,Teller - (answers)An entry-level commercial bank position with the responsibility to interact
with customers at the bank's front desk or drive-through window.
Credit Analyst - (answers)A commercial bank position with the responsibility to assess the
riskiness of lending to borrowers and determining whether or not loans should be extended
to potential bank clients.
Personal Banker - (answers)A commercial bank position with the responsibility to find and
attract new clients.
Trusts - (answers)An arrangement that allows a third party to hold assets on behalf of a
beneficiary or beneficiaries.
Estates - (answers)Everything that a person owns or controls, especially at death.
Wills - (answers)A legal expression of an individual's wishes concerning the deposition of his
or her property after death.
Liquidity - (answers)The ability to turn financial securities into cash easily without losing
significant value.
Treasury Securities - (answers)A debt instrument (bond) that is issued by the United States
government in order to raise capital.
Revenues - (answers)The top line of the income statement. The total amount of money a
business brings in (before subtracting any costs).
Corporate Bonds - (answers)A debt instrument that is issued by a corporation in order to
raise capital.
Stock - (answers)A share of ownership in a company.
, Money Market - (answers)A type of financial market used for short-term assets that are held
for less than one year.
Capital Market - (answers)A type of financial market used for long-term assets that are held
for greater than one year.
Primary Market - (answers)The financial market where securities (stocks and/or bonds) are
first sold.
Sydicate - (answers)A group of intermediaries that is used to oversee the issuance of stocks
and/or bonds.
What are the 3 main types of financial securities? - (answers)1. Treasury securities
2. Corporate bonds
3. Stocks
IPO (initial public offering) - (answers)When a privately held company first offers shares of
stock to outside investors to raise capital, therefore becoming a publicly owned company.
Secondary market - (answers)The financial market where securities are traded after the
initial issuance.
Auction market - (answers)A secondary market with a physical location and where prices are
determined by investors' willingness to pay.G
NYSE (New York Stock Exchange) - (answers)A physical trading floor and a computer network
where stocks are bought and sold. It is the largest stock exchange in the world.
Dealer market - (answers)A secondary market made up of multiple dealers that hold an
inventory of securities and quote prices.
ACTUAL EXAM-LATEST UPDATE|RATED 100%
CORRECT!!ALREADY GRADED A+ | GUARANTEED PASS!!
Finance - (answers)The study of managing and allocating funds at the personal or business
level.
Accounting - (answers)The system of recording, reporting, and summarizing past financial
information and transactions.
Capital - (answers)A financial asset that can be used by a firm or individual. Examples of
capital may be machinery or cash held by a firm.
Subspecialties of Finance - (answers)1. Business finance
2. Investments
3. Financial institutions
Business finance - (answers)An area of finance that deals with sources of funding, the capital
structure of corporations, the actions that managers take to increase the value of the firm to
its owners, and the tools and analysis used to allocate financial resources.
Capital Structure - (answers)The mixture of debt and equity used to finance a firm.
Investments - (answers)An area of finance that involves deciding which assets to invest in to
create wealth in the future.
Asset Pricing - (answers)The process of valuing assets.
Current Market Value - (answers)What someone would pay right now for an asset.
,Financial Institutions - (answers)An area of finance that includes firms or organizations that
exist to accept a wide variety of deposits, to offer investment products to individuals and
businesses, to provide loans, or to broker financial transactions.
Utility - (answers)The total satisfaction received from consuming goods and services.
Publicly Traded Firm - (answers)Firms that have issued shares to the public.
Privately Held Company - (answers)Firms that have not issued shares to the public where the
ownership rights are privately held.
What are 3 main tasks of a Financial Manager - (answers)1. Making investment decisions
2. Making financing decisions
3. Managing working capital
Research & Development - (answers)The business function responsible for improving and
developing services and products.
Cash Management - (answers)Managing the day-to-day finance operations of a firm.
Tax Strategies - (answers)Methods used to minimize the amount of taxes a business pays.
Financial Policy Implementation - (answers)Incorporating new finance ideas within a firm.
Venture Capitalists - (answers)Professional managers of investment capital that typically
invest in very young new ventures.
Harvest - (answers)Generating cash or stock from the sales or IPO of companies in the
portfolio of investments.
,Teller - (answers)An entry-level commercial bank position with the responsibility to interact
with customers at the bank's front desk or drive-through window.
Credit Analyst - (answers)A commercial bank position with the responsibility to assess the
riskiness of lending to borrowers and determining whether or not loans should be extended
to potential bank clients.
Personal Banker - (answers)A commercial bank position with the responsibility to find and
attract new clients.
Trusts - (answers)An arrangement that allows a third party to hold assets on behalf of a
beneficiary or beneficiaries.
Estates - (answers)Everything that a person owns or controls, especially at death.
Wills - (answers)A legal expression of an individual's wishes concerning the deposition of his
or her property after death.
Liquidity - (answers)The ability to turn financial securities into cash easily without losing
significant value.
Treasury Securities - (answers)A debt instrument (bond) that is issued by the United States
government in order to raise capital.
Revenues - (answers)The top line of the income statement. The total amount of money a
business brings in (before subtracting any costs).
Corporate Bonds - (answers)A debt instrument that is issued by a corporation in order to
raise capital.
Stock - (answers)A share of ownership in a company.
, Money Market - (answers)A type of financial market used for short-term assets that are held
for less than one year.
Capital Market - (answers)A type of financial market used for long-term assets that are held
for greater than one year.
Primary Market - (answers)The financial market where securities (stocks and/or bonds) are
first sold.
Sydicate - (answers)A group of intermediaries that is used to oversee the issuance of stocks
and/or bonds.
What are the 3 main types of financial securities? - (answers)1. Treasury securities
2. Corporate bonds
3. Stocks
IPO (initial public offering) - (answers)When a privately held company first offers shares of
stock to outside investors to raise capital, therefore becoming a publicly owned company.
Secondary market - (answers)The financial market where securities are traded after the
initial issuance.
Auction market - (answers)A secondary market with a physical location and where prices are
determined by investors' willingness to pay.G
NYSE (New York Stock Exchange) - (answers)A physical trading floor and a computer network
where stocks are bought and sold. It is the largest stock exchange in the world.
Dealer market - (answers)A secondary market made up of multiple dealers that hold an
inventory of securities and quote prices.
