FINC 409 - Ch 1 M/C Practice Problems
Exam With Complete Solutions
The primary goal of the financial manager of a profit-seeking organization is
to:
a. maximize market share
b. maximize the owners' wealth
c. increase sales and profit
d. have healthy cash flow - ANSWER B
Finance has its origins in:
a. economics and statistics
b. accounting and sociology
c. accounting and economics
d. psychology and mathematics - ANSWER C
Finance is:
a. the study of how individuals, institutions, governments, and businesses
acquire, spend, and manage
money and other financial assets
b. the study of how businesses acquire, spend, and manage money and
other financial assets
c. the study of how governments, and businesses acquire, spend, and
manage money and other
financial assets
d. none of the above - ANSWER A
Crucial elements of the financial environment and well-developed financial
system include:
a. financial institutions
b. financial markets
c. investments and financial management
d. all of the above - ANSWER D
, An area of finance that involves the sale or marketing of securities, the
analysis of securities, and the
management of investment risk through portfolio diversification is referred
to as:
a. financial management
b. investments
c. financial institutions
d. financial markets
e. none of the above - ANSWER B
The issuing of new securities, mortgages, and other claims to wealth takes
place in the:
a. secondary market
b. money market
c. primary market
d. securities market - ANSWER C
An effective financial system must have:
a. several sets of policy makers who pass laws and make decisions relating
to fiscal and monetary
policies
b. an efficient monetary system for creating and transferring money
c. financial markets that facilitate the transfer of financial assets amongst
individuals, institutions, and
businesses
d. all of the above - ANSWER D
An area of finance that refers to the physical locations or electronic forums
that facilitate the flow of funds
among investors, businesses, and governments is called:
a. financial management
b. investments
c. financial institutions
d. financial markets
e. none of the above - ANSWER D
An area of finance that involves financial planning, asset management and
fund-raising decisions to enhance
the value of businesses is called:
Exam With Complete Solutions
The primary goal of the financial manager of a profit-seeking organization is
to:
a. maximize market share
b. maximize the owners' wealth
c. increase sales and profit
d. have healthy cash flow - ANSWER B
Finance has its origins in:
a. economics and statistics
b. accounting and sociology
c. accounting and economics
d. psychology and mathematics - ANSWER C
Finance is:
a. the study of how individuals, institutions, governments, and businesses
acquire, spend, and manage
money and other financial assets
b. the study of how businesses acquire, spend, and manage money and
other financial assets
c. the study of how governments, and businesses acquire, spend, and
manage money and other
financial assets
d. none of the above - ANSWER A
Crucial elements of the financial environment and well-developed financial
system include:
a. financial institutions
b. financial markets
c. investments and financial management
d. all of the above - ANSWER D
, An area of finance that involves the sale or marketing of securities, the
analysis of securities, and the
management of investment risk through portfolio diversification is referred
to as:
a. financial management
b. investments
c. financial institutions
d. financial markets
e. none of the above - ANSWER B
The issuing of new securities, mortgages, and other claims to wealth takes
place in the:
a. secondary market
b. money market
c. primary market
d. securities market - ANSWER C
An effective financial system must have:
a. several sets of policy makers who pass laws and make decisions relating
to fiscal and monetary
policies
b. an efficient monetary system for creating and transferring money
c. financial markets that facilitate the transfer of financial assets amongst
individuals, institutions, and
businesses
d. all of the above - ANSWER D
An area of finance that refers to the physical locations or electronic forums
that facilitate the flow of funds
among investors, businesses, and governments is called:
a. financial management
b. investments
c. financial institutions
d. financial markets
e. none of the above - ANSWER D
An area of finance that involves financial planning, asset management and
fund-raising decisions to enhance
the value of businesses is called:
