Finance Skills for Managers - D076 Exam
Questions With Complete Solutions
UNIT 2 || ||
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
(Correct! Financial institutions such as banks, insurance companies,
|| || || || || || || ||
and mutual fund companies provide these services.)
|| || || || || ||
What is the main objective of personal financial goals? - CORRECT
|| || || || || || || || || || ||
ANSWER✔✔-To maximize individual utility || || ||
(Correct! You set goals and act to increase your satisfaction or
|| || || || || || || || || || ||
happiness by taking care of necessities and achieving priorities.)
|| || || || || || || ||
Which task does the financial manager of a firm perform that
|| || || || || || || || || || ||
involves the issuance of new stocks and bonds? - CORRECT
|| || || || || || || || || ||
ANSWER✔✔-Making financing decisions || ||
,(Correct! Once investment decisions are made, a financial manager
|| || || || || || || || ||
considers different possibilities of financing sources for the
|| || || || || || || ||
investments. This may include issuing new stocks and bonds.)
|| || || || || || || ||
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.
|| || || || ||
(Correct! Any financial decision should make sense in terms of its
|| || || || || || || || || || ||
costs and benefits.)
|| ||
In which type of market would a company issue bonds or stocks for
|| || || || || || || || || || || || ||
the first time? - CORRECT ANSWER✔✔-Primary market
|| || || || || ||
(Correct! This is the purpose of a primary market.)
|| || || || || || || ||
Which type of financial institution is a mutual fund? - CORRECT
|| || || || || || || || || || ||
ANSWER✔✔-Investment institution ||
(Correct! Investment institutions provide individuals and firms access
|| || || || || || ||
to financial markets.)
|| || ||
, Which financial institution specializes in managing and administering
|| || || || || || || ||
retirement funds? - CORRECT ANSWER✔✔-Pension funds
|| || || || ||
(Correct! Pension funds specialize in retirement funds.)
|| || || || || ||
Which type of economic indicator is the consumer price index? -
|| || || || || || || || || || ||
CORRECT ANSWER✔✔-Lagging indicator || ||
(Correct! CPI usually changes after the economy as a whole
|| || || || || || || || || ||
changes.)
What does the term ethical refer to? - CORRECT ANSWER✔✔-The
|| || || || || || || || || ||
accepted standards of conduct that guide a person's behavior
|| || || || || || || ||
(Correct! Ethical refers to the accepted standards of conduct that
|| || || || || || || || || ||
guide a person's behavior.)
|| || ||
A company's officers and board of directors are selling their stocks in
|| || || || || || || || || || ||
the firm at higher prices due to false accounting reports that made
|| || || || || || || || || || || || ||
the stock seem more valuable than it truly was. Which ethical issue
|| || || || || || || || || || || ||
is occurring in this situation? - CORRECT ANSWER✔✔-Agency
|| || || || || || || ||
problem due to conflicting interests
|| || || ||
Questions With Complete Solutions
UNIT 2 || ||
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
(Correct! Financial institutions such as banks, insurance companies,
|| || || || || || || ||
and mutual fund companies provide these services.)
|| || || || || ||
What is the main objective of personal financial goals? - CORRECT
|| || || || || || || || || || ||
ANSWER✔✔-To maximize individual utility || || ||
(Correct! You set goals and act to increase your satisfaction or
|| || || || || || || || || || ||
happiness by taking care of necessities and achieving priorities.)
|| || || || || || || ||
Which task does the financial manager of a firm perform that
|| || || || || || || || || || ||
involves the issuance of new stocks and bonds? - CORRECT
|| || || || || || || || || ||
ANSWER✔✔-Making financing decisions || ||
,(Correct! Once investment decisions are made, a financial manager
|| || || || || || || || ||
considers different possibilities of financing sources for the
|| || || || || || || ||
investments. This may include issuing new stocks and bonds.)
|| || || || || || || ||
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.
|| || || || ||
(Correct! Any financial decision should make sense in terms of its
|| || || || || || || || || || ||
costs and benefits.)
|| ||
In which type of market would a company issue bonds or stocks for
|| || || || || || || || || || || || ||
the first time? - CORRECT ANSWER✔✔-Primary market
|| || || || || ||
(Correct! This is the purpose of a primary market.)
|| || || || || || || ||
Which type of financial institution is a mutual fund? - CORRECT
|| || || || || || || || || || ||
ANSWER✔✔-Investment institution ||
(Correct! Investment institutions provide individuals and firms access
|| || || || || || ||
to financial markets.)
|| || ||
, Which financial institution specializes in managing and administering
|| || || || || || || ||
retirement funds? - CORRECT ANSWER✔✔-Pension funds
|| || || || ||
(Correct! Pension funds specialize in retirement funds.)
|| || || || || ||
Which type of economic indicator is the consumer price index? -
|| || || || || || || || || || ||
CORRECT ANSWER✔✔-Lagging indicator || ||
(Correct! CPI usually changes after the economy as a whole
|| || || || || || || || || ||
changes.)
What does the term ethical refer to? - CORRECT ANSWER✔✔-The
|| || || || || || || || || ||
accepted standards of conduct that guide a person's behavior
|| || || || || || || ||
(Correct! Ethical refers to the accepted standards of conduct that
|| || || || || || || || || ||
guide a person's behavior.)
|| || ||
A company's officers and board of directors are selling their stocks in
|| || || || || || || || || || ||
the firm at higher prices due to false accounting reports that made
|| || || || || || || || || || || || ||
the stock seem more valuable than it truly was. Which ethical issue
|| || || || || || || || || || || ||
is occurring in this situation? - CORRECT ANSWER✔✔-Agency
|| || || || || || || ||
problem due to conflicting interests
|| || || ||
