D076 Unit 2 Question and answers
rated A+ 2025/2026
What are the main services offered by financial institutions? - correct answer ✔Accepting a wide
variety of deposits, offering investment products, providing loans, and brokering financial transactions
What is the main objective of personal financial goals? - correct answer ✔To maximize individual utility
Which task does the financial manager of a firm perform that involves the issuance of new stocks and
bonds? - correct answer ✔Making financing decisions
Why is understanding the definition of finance important in managing personal finances? - correct
answer ✔It helps individuals compare the costs and benefits of an action to determine whether to take
that action.
In which type of market would a company issue bonds or stocks for the first time? - correct answer
✔Primary market
Which type of financial institution is a mutual fund? - correct answer ✔Investment institution
Which financial institution specializes in managing and administering retirement funds? - correct
answer ✔Pension funds
Which type of economic indicator is the consumer price index? - correct answer ✔Lagging indicator
What does the term ethical refer to? - correct answer ✔The accepted standards of conduct that guide
a person's behavior
rated A+ 2025/2026
What are the main services offered by financial institutions? - correct answer ✔Accepting a wide
variety of deposits, offering investment products, providing loans, and brokering financial transactions
What is the main objective of personal financial goals? - correct answer ✔To maximize individual utility
Which task does the financial manager of a firm perform that involves the issuance of new stocks and
bonds? - correct answer ✔Making financing decisions
Why is understanding the definition of finance important in managing personal finances? - correct
answer ✔It helps individuals compare the costs and benefits of an action to determine whether to take
that action.
In which type of market would a company issue bonds or stocks for the first time? - correct answer
✔Primary market
Which type of financial institution is a mutual fund? - correct answer ✔Investment institution
Which financial institution specializes in managing and administering retirement funds? - correct
answer ✔Pension funds
Which type of economic indicator is the consumer price index? - correct answer ✔Lagging indicator
What does the term ethical refer to? - correct answer ✔The accepted standards of conduct that guide
a person's behavior
