D076 OA UPDATED ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS
●● 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
Answer: B. To maximize individual utility
●● 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
Answer: A. Making financing decisions
●● 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.
Answer: A. 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?
Dealer market
,Primary market
Secondary market
Money market
Answer: Primary market
●● Which type of financial institution is a mutual fund?
Contractual institution
Depository institution
Investment institution
Federal institution
Answer: Investment institution
●● Which financial institution specializes in managing and
administering retirement funds?
, Investment banks
Mutual funds
Pension funds
Private equity
Answer: Pension funds
●● Which type of economic indicator is the consumer price index?
Leading indicator
Coincident indicator
Forecasting indicator
Lagging indicator
Answer: Lagging indicator
●● What does the term ethical refer to?
QUESTIONS AND CORRECT ANSWERS
●● 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
Answer: B. To maximize individual utility
●● 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
Answer: A. Making financing decisions
●● 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.
Answer: A. 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?
Dealer market
,Primary market
Secondary market
Money market
Answer: Primary market
●● Which type of financial institution is a mutual fund?
Contractual institution
Depository institution
Investment institution
Federal institution
Answer: Investment institution
●● Which financial institution specializes in managing and
administering retirement funds?
, Investment banks
Mutual funds
Pension funds
Private equity
Answer: Pension funds
●● Which type of economic indicator is the consumer price index?
Leading indicator
Coincident indicator
Forecasting indicator
Lagging indicator
Answer: Lagging indicator
●● What does the term ethical refer to?
