C214 Financial Management 2024 Exam Questions And Answers

C214 Financial Management 2024 Exam Questions And Answers Finance is a subfield with in - ANSWER Economics Which of the following is not an example of firm capital? - ANSWER Financial Markets Capital is defined as a - ANSWER financial asset Corporate finance is devoted to understanding various types of - ANSWER financial instruments Which of the following is an example of firm capital? - ANSWER Cash Corporate finance focuses on the decision making by the - ANSWER Management What are the three important areas of finance - ANSWER Corporate finance, investments, and banking/financial institutions Banks make money when interest rates they charge money to borrowers are less than interest rates they pay to depositors - ANSWER False Stocks and Bonds are two types of - ANSWER financial instruments Stocks represent ownership in - ANSWER a particular company Companies can raise capital by issuing - ANSWER bonds or stocks A stock is a instrument issued by - ANSWER corporations A treasury bond is a debt instrument issued by - ANSWER corporations or governments A stock is a share of ________________ in a particular company - ANSWER ownership A bond is similar to - ANSWER A loan Primary financial markets where issuers - ANSWER place new securities with investors What are the two ways a syndicate can place a bond? - ANSWER Competitive sales or negotiated sale An IPO is a - ANSWER New equity offering An IPO on the - ANSWER Primary market Syndicates are generally made up of - ANSWER investment banks and other institutional investors Negotiated sales - ANSWER allow underwriters to submit bids to purchase bonds Who is the worlds largest secondary financial market - ANSWER New York Stock Exchange (NYSE) Auction markets - ANSWER Have a physical location Dealer markets - ANSWER Do not have a physical location Nasdaq is an example of a - ANSWER Dealer market Stocks that are listed on dealer markets generally have - ANSWER multiple dealers for each stock When dealers have to compete with one another, transaction costs will generally - ANSWER Decrease Markets are where - ANSWER prices are determined The ___________ specialist has an objective to provide liquidity to the market. - ANSWER NYSE The NYSE specialist will charge _________________ to sellers of the stock - ANSWER higher prices The NYSE specialist will charge ______________ to buyers of the stock - ANSWER a lower price The bid ask spread is compensation to the specialist for - ANSWER providing liquidity to the market What are the two types of orders that are used by investors? - ANSWER Market orders & Limit orders Market orders are - ANSWER time sensitive