Pre-assessment: Finance Skills
(KRV1) study companion Question
and answers rated A+ 2025/2026
Which area of finance involves deciding which assets to invest in to create wealth in the future?
Financial management
Financial institutions
Investments
Asset pricing
(unit-2) - correct answer ✔Investments
Which type of financial market is where securities such as stocks and bonds are traded after their initial
issuance?
The initial public offering
The primary financial market
The dealer market
The secondary financial market
(unit-2) - correct answer ✔The secondary financial market
,What is the main goal of a firm?
To circulate money in the economy
To maximize owner wealth
To make investment decisions
To make decisions on how to
finance projects
(unit-2) - correct answer ✔To maximize owner wealth
What are financial managers doing if they evaluate whether it is worth spending money on research and
development for a new product?
Making an investment decision
Managing working capital
Making a financing decision
Implementing a financial policy
(unit-2) - correct answer ✔Making an investment decision
, What type of financial institution is an insurance company?
Circulatory
Depository
Investment
Contractual
(unit-2) - correct answer ✔Contractual
Which financial institution invests funds contributed by a company to provide retirement funds for the
company's employees?
Mutual fund
Central bank
Pension fund
Insurance
(unit-2) - correct answer ✔Pension fund
Personal income is which type of economic indicator?
Leading
Lagging
Coincident
Unifying
(KRV1) study companion Question
and answers rated A+ 2025/2026
Which area of finance involves deciding which assets to invest in to create wealth in the future?
Financial management
Financial institutions
Investments
Asset pricing
(unit-2) - correct answer ✔Investments
Which type of financial market is where securities such as stocks and bonds are traded after their initial
issuance?
The initial public offering
The primary financial market
The dealer market
The secondary financial market
(unit-2) - correct answer ✔The secondary financial market
,What is the main goal of a firm?
To circulate money in the economy
To maximize owner wealth
To make investment decisions
To make decisions on how to
finance projects
(unit-2) - correct answer ✔To maximize owner wealth
What are financial managers doing if they evaluate whether it is worth spending money on research and
development for a new product?
Making an investment decision
Managing working capital
Making a financing decision
Implementing a financial policy
(unit-2) - correct answer ✔Making an investment decision
, What type of financial institution is an insurance company?
Circulatory
Depository
Investment
Contractual
(unit-2) - correct answer ✔Contractual
Which financial institution invests funds contributed by a company to provide retirement funds for the
company's employees?
Mutual fund
Central bank
Pension fund
Insurance
(unit-2) - correct answer ✔Pension fund
Personal income is which type of economic indicator?
Leading
Lagging
Coincident
Unifying
