FIN 419 - Final Exam Study Guide
How to Use this Study Guide – READ ME FIRST
The following study guide will NOT have the same exact questions on your
test! However, this study guide WILL help you ace the Final Exam. The guide
covers the same topics and will help you gain a deeper understanding of
the concepts. Best of all, you are still guaranteed a score of 90% or higher
or your money back!
Tip #1: Use CRTL+F to search a related keyword to quickly find the topic you
need.
Tip #2: If a topic is missing, please email us at . We
can usually provide immediate custom support during normal business
hours.
1. Finance is concerned with the process institutions, markets, and
instruments involved in the transfer of money among and between
individuals, businesses and government.
True
2. The president or chief executive officer is elected by the firm’s
stockholders and has ultimate authority to guide corporate affairs and
make general policy.
False
3. Finance can be defined as
the art and science of managing money.
4. Under which of the following legal forms of organization, is ownership
readily transferable?
Corporation
, 5. _________ is the chance of loss or the variability of returns associated
with a given asset.
Risk
6. Prime grade commercial paper will most likely have a higher annual
return than
A Treasury bill.
7. Time value of money is based on the belief that a dollar that will be
received at some future date is worth more than a dollar today.
False
8. In general, with an amortized loan, the payment amount grows over the
life of the loan, the principal portion of each payment grows over the life of
the loan, and the interest portion declines over the life of the loan.
False
9. An annuity with an infinite life is called a(n)
Perpetuity
10. The _________ is/are a graphic depiction of the term structure of
interest rates.
Yield curve
11. Generally, long-term loans have higher interest rates than short-term
loans because of
a. the general expectation of higher future rates of inflation.
b. lender preferences for shorter-term, more liquid loans.
How to Use this Study Guide – READ ME FIRST
The following study guide will NOT have the same exact questions on your
test! However, this study guide WILL help you ace the Final Exam. The guide
covers the same topics and will help you gain a deeper understanding of
the concepts. Best of all, you are still guaranteed a score of 90% or higher
or your money back!
Tip #1: Use CRTL+F to search a related keyword to quickly find the topic you
need.
Tip #2: If a topic is missing, please email us at . We
can usually provide immediate custom support during normal business
hours.
1. Finance is concerned with the process institutions, markets, and
instruments involved in the transfer of money among and between
individuals, businesses and government.
True
2. The president or chief executive officer is elected by the firm’s
stockholders and has ultimate authority to guide corporate affairs and
make general policy.
False
3. Finance can be defined as
the art and science of managing money.
4. Under which of the following legal forms of organization, is ownership
readily transferable?
Corporation
, 5. _________ is the chance of loss or the variability of returns associated
with a given asset.
Risk
6. Prime grade commercial paper will most likely have a higher annual
return than
A Treasury bill.
7. Time value of money is based on the belief that a dollar that will be
received at some future date is worth more than a dollar today.
False
8. In general, with an amortized loan, the payment amount grows over the
life of the loan, the principal portion of each payment grows over the life of
the loan, and the interest portion declines over the life of the loan.
False
9. An annuity with an infinite life is called a(n)
Perpetuity
10. The _________ is/are a graphic depiction of the term structure of
interest rates.
Yield curve
11. Generally, long-term loans have higher interest rates than short-term
loans because of
a. the general expectation of higher future rates of inflation.
b. lender preferences for shorter-term, more liquid loans.
