D076 OA QUESTIONS AND VERIFIED
ANSWERS
\Q\. What are the main services offered by financial institutions?
A. Soliciting charitable donations and then managing the distribution of these funds
B. Accepting a wide variety of deposits, offering investment products, providing loans, and
brokering financial transactions
C. Deciding which assets to invest in to create wealth in the future
D. Evaluating sources of funding for a business project, the capital structure of a firm, or actions
managers could take to increase the value of the firm - ANSWERS✔-B. Accepting a wide variety
of deposits, offering investment products, providing loans, and brokering financial transactions
\Q\.What is the main objective of personal financial goals?
A. To maximize stock investments
B. To maximize individual utility
C. To maximize charity donations
,D. To maximize owner wealth - ANSWERS✔-B. To maximize individual utility
\Q\.Which task does the financial manager of a firm perform that involves the issuance of new
stocks and bonds?
A. Making financing decisions
B. Managing working capital
C. Deciding on accounting standards
D. Making investing decisions - ANSWERS✔-A. Making financing decisions
\Q\.Why is understanding the definition of finance important in managing personal finances?
A. It helps individuals compare the costs and benefits of an action to determine whether to take
that action.
B. It helps individuals act ethically with regard to finances.
C.It helps individuals understand legal issues related to finance.
D. It allows individuals to find an investment with the highest return possible. - ANSWERS✔-A. It
helps individuals compare the costs and benefits of an action to determine whether to take that
action.
, \Q\.In which type of market would a company issue bonds or stocks for the first time?
Dealer market
Primary market
Secondary market
Money market - ANSWERS✔-Primary market
\Q\.Which type of financial institution is a mutual fund?
Contractual institution
Depository institution
Investment institution
Federal institution - ANSWERS✔-Investment institution
\Q\.Which financial institution specializes in managing and administering retirement funds?
Investment banks
Mutual funds
ANSWERS
\Q\. What are the main services offered by financial institutions?
A. Soliciting charitable donations and then managing the distribution of these funds
B. Accepting a wide variety of deposits, offering investment products, providing loans, and
brokering financial transactions
C. Deciding which assets to invest in to create wealth in the future
D. Evaluating sources of funding for a business project, the capital structure of a firm, or actions
managers could take to increase the value of the firm - ANSWERS✔-B. Accepting a wide variety
of deposits, offering investment products, providing loans, and brokering financial transactions
\Q\.What is the main objective of personal financial goals?
A. To maximize stock investments
B. To maximize individual utility
C. To maximize charity donations
,D. To maximize owner wealth - ANSWERS✔-B. To maximize individual utility
\Q\.Which task does the financial manager of a firm perform that involves the issuance of new
stocks and bonds?
A. Making financing decisions
B. Managing working capital
C. Deciding on accounting standards
D. Making investing decisions - ANSWERS✔-A. Making financing decisions
\Q\.Why is understanding the definition of finance important in managing personal finances?
A. It helps individuals compare the costs and benefits of an action to determine whether to take
that action.
B. It helps individuals act ethically with regard to finances.
C.It helps individuals understand legal issues related to finance.
D. It allows individuals to find an investment with the highest return possible. - ANSWERS✔-A. It
helps individuals compare the costs and benefits of an action to determine whether to take that
action.
, \Q\.In which type of market would a company issue bonds or stocks for the first time?
Dealer market
Primary market
Secondary market
Money market - ANSWERS✔-Primary market
\Q\.Which type of financial institution is a mutual fund?
Contractual institution
Depository institution
Investment institution
Federal institution - ANSWERS✔-Investment institution
\Q\.Which financial institution specializes in managing and administering retirement funds?
Investment banks
Mutual funds
