Finance 302 Whaley Exam 1 Questions
and Answers.
Definition of finance - Answer the art and science of managing wealth
Main objective of finance - Answer to make individuals and their businesses better off
What decisions do we make in finance? - Answer Deciding what assets to buy/sell and when
to buy/sell these assets.
Definition of Financial Management - Answer Those activities that create or preserve the
economic value of the assets of an individual, small business, or corporation.
Financial management comes down to... - Answer making sound financial decisions
The Cycle of Money - Answer Financial intermediaries assist in the movement of money, from
lenders to borrowers and back again.
Main objective of the Cycle of Money - Answer make all the participants better off
4 Financial Areas - Answer 1. Corporate finance
2. Investments
3. Financial Institutions and Markets
4. International Finance
Financial Markets - Answer Forums where buyer and sellers of financial assets and
commodities meet
Financial Markets can be classified by - Answer -Type of asset traded
-Maturity of the financial asset (money vs. capital markets)
-Owner of the financial asset (primary vs secondary markets)
-Nature of transaction (dealer vs auction markets)
Finance Manager - Answer -Has to determine the best repayment structure for borrowed
funds
-Makes sure that debt obligations are met on time
and Answers.
Definition of finance - Answer the art and science of managing wealth
Main objective of finance - Answer to make individuals and their businesses better off
What decisions do we make in finance? - Answer Deciding what assets to buy/sell and when
to buy/sell these assets.
Definition of Financial Management - Answer Those activities that create or preserve the
economic value of the assets of an individual, small business, or corporation.
Financial management comes down to... - Answer making sound financial decisions
The Cycle of Money - Answer Financial intermediaries assist in the movement of money, from
lenders to borrowers and back again.
Main objective of the Cycle of Money - Answer make all the participants better off
4 Financial Areas - Answer 1. Corporate finance
2. Investments
3. Financial Institutions and Markets
4. International Finance
Financial Markets - Answer Forums where buyer and sellers of financial assets and
commodities meet
Financial Markets can be classified by - Answer -Type of asset traded
-Maturity of the financial asset (money vs. capital markets)
-Owner of the financial asset (primary vs secondary markets)
-Nature of transaction (dealer vs auction markets)
Finance Manager - Answer -Has to determine the best repayment structure for borrowed
funds
-Makes sure that debt obligations are met on time
