D076 (FINANCE ECONOMIC) MANEGERIAL SKILLS QUESTIONS
AND ANSWERS COMPLETE AND ACCURATE REAL EXAM WITH
DETAILED ANSWERS (VERIFIED 100%) |ALREADY GRADED
A+!!!!.
D076
Which area of finance deals with sources of funding and the capital structure of
corporations and seeks to increase the value of a firm to its owners? - - ANS - -
Business finance
What is the primary difference between finance and accounting? - - ANS - -Finance
focuses on the future, while accounting is generally backward-looking.
Which subspecialty of finance primarily involves deciding which assets will create
more wealth and earn positive returns? - - ANS - -Investments
What is the primary goal of the financial manager of a firm? - - ANS - -To maximize
owner wealth
What should be the main question a firm asks when considering any investment
decision? - - ANS - -Do the benefits of this investment outweigh the costs?
What is the primary aim of personal finance goals? - - ANS - -To maximize
satisfaction from products purchased and services obtained
,Which task does a financial manager perform when choosing to obtain a loan to
purchase a piece of equipment for a new project? - - ANS - -Making financing
decisions
Which financial career focuses on investing capital into firms whose shares are not
currently sold on any public stock exchange? - - ANS - -Private equity
Which task does a financial manager perform when assessing the costs and benefits
of potential projects? - - ANS - -Making investment decisions
What tool can you use to understand your overall personal cash flows? - - ANS - -
Budgeting
What is a reasonable alternative to keeping an emergency stash of cash? - - ANS - -
Investing in a savings account
You want to buy a house, so you obtain a mortgage for which you can afford the
monthly payments. What process have you engaged in as part of your financial
decision-making? - - ANS - -Financing
What area of finance involves deciding which assets to invest in to create wealth in
the future? - - ANS - -Investments
Hannah is the financial manager of a firm. A project that she has recommended has
been approved and will cost $5 million. Since the company does not have enough
cash on reserve, Hannah must figure out how to raise enough money to start the
,project. She can choose whether to issue new bonds, new stocks, a mortgage loan, or
some combination of those options. What task is Hannah performing in this scenario?
- - ANS - -Making a financing decision
Maria and Mateo are setting financial goals. They decide that they need to save $200
each month to reach their goal of taking their children to visit their grandparents in
Spain next summer. What is the objective of setting such a goal? - - ANS - -To
maximize individual utility
Which professional works with individuals to help them achieve their financial goals?
- - ANS - -Financial planner
Omar is about to purchase a new car for $30,000. He knows he wants to buy the car,
but he is still trying to decide how to pay for it. He has barely over $30,000 in his bank
account. He can either take out an auto loan from a bank or use a mix of cash and an
auto loan.
In this scenario, what is Omar doing? - - ANS - -Financing a goal
What are the purposes of financial markets? - - ANS - -To provide liquidity and
determine prices
In which financial market are securities such as stocks and bonds are traded after
their initial issuance? - - ANS - -Secondary market
What kind of market primarily allows institutions to borrow and lend in the short
term? - - ANS - -Money market
, A local start-up company just hit its five-year anniversary and is planning an initial
public offering sometime this year. In order to issue public stock, which market will
the company use? - - ANS - -Primary market
What is the primary role of financial institutions? - - ANS - -To conduct financial
transactions such as investments, loans, and deposits
What is a depository institution? - - ANS - -An institution that accepts and pays
interest on deposits of money, as well as extends loans
Which financial institution ensures that a nation's economy remains healthy by
controlling the amount of money circulating in the economy? - - ANS - -Central bank
How do insurance companies pay policyholders when a claim is made? - - ANS - -
They use returns from stocks and bonds.
Which type of financial institution deals mainly with providing for retirement through
employers? - - ANS - -Pension fund
A large corporation is looking to merge with another large corporation. Which
financial institution can help them do this? - - ANS - -Investment bank
Unemployment rate is which type of economic indicator? - - ANS - -Lagging
AND ANSWERS COMPLETE AND ACCURATE REAL EXAM WITH
DETAILED ANSWERS (VERIFIED 100%) |ALREADY GRADED
A+!!!!.
D076
Which area of finance deals with sources of funding and the capital structure of
corporations and seeks to increase the value of a firm to its owners? - - ANS - -
Business finance
What is the primary difference between finance and accounting? - - ANS - -Finance
focuses on the future, while accounting is generally backward-looking.
Which subspecialty of finance primarily involves deciding which assets will create
more wealth and earn positive returns? - - ANS - -Investments
What is the primary goal of the financial manager of a firm? - - ANS - -To maximize
owner wealth
What should be the main question a firm asks when considering any investment
decision? - - ANS - -Do the benefits of this investment outweigh the costs?
What is the primary aim of personal finance goals? - - ANS - -To maximize
satisfaction from products purchased and services obtained
,Which task does a financial manager perform when choosing to obtain a loan to
purchase a piece of equipment for a new project? - - ANS - -Making financing
decisions
Which financial career focuses on investing capital into firms whose shares are not
currently sold on any public stock exchange? - - ANS - -Private equity
Which task does a financial manager perform when assessing the costs and benefits
of potential projects? - - ANS - -Making investment decisions
What tool can you use to understand your overall personal cash flows? - - ANS - -
Budgeting
What is a reasonable alternative to keeping an emergency stash of cash? - - ANS - -
Investing in a savings account
You want to buy a house, so you obtain a mortgage for which you can afford the
monthly payments. What process have you engaged in as part of your financial
decision-making? - - ANS - -Financing
What area of finance involves deciding which assets to invest in to create wealth in
the future? - - ANS - -Investments
Hannah is the financial manager of a firm. A project that she has recommended has
been approved and will cost $5 million. Since the company does not have enough
cash on reserve, Hannah must figure out how to raise enough money to start the
,project. She can choose whether to issue new bonds, new stocks, a mortgage loan, or
some combination of those options. What task is Hannah performing in this scenario?
- - ANS - -Making a financing decision
Maria and Mateo are setting financial goals. They decide that they need to save $200
each month to reach their goal of taking their children to visit their grandparents in
Spain next summer. What is the objective of setting such a goal? - - ANS - -To
maximize individual utility
Which professional works with individuals to help them achieve their financial goals?
- - ANS - -Financial planner
Omar is about to purchase a new car for $30,000. He knows he wants to buy the car,
but he is still trying to decide how to pay for it. He has barely over $30,000 in his bank
account. He can either take out an auto loan from a bank or use a mix of cash and an
auto loan.
In this scenario, what is Omar doing? - - ANS - -Financing a goal
What are the purposes of financial markets? - - ANS - -To provide liquidity and
determine prices
In which financial market are securities such as stocks and bonds are traded after
their initial issuance? - - ANS - -Secondary market
What kind of market primarily allows institutions to borrow and lend in the short
term? - - ANS - -Money market
, A local start-up company just hit its five-year anniversary and is planning an initial
public offering sometime this year. In order to issue public stock, which market will
the company use? - - ANS - -Primary market
What is the primary role of financial institutions? - - ANS - -To conduct financial
transactions such as investments, loans, and deposits
What is a depository institution? - - ANS - -An institution that accepts and pays
interest on deposits of money, as well as extends loans
Which financial institution ensures that a nation's economy remains healthy by
controlling the amount of money circulating in the economy? - - ANS - -Central bank
How do insurance companies pay policyholders when a claim is made? - - ANS - -
They use returns from stocks and bonds.
Which type of financial institution deals mainly with providing for retirement through
employers? - - ANS - -Pension fund
A large corporation is looking to merge with another large corporation. Which
financial institution can help them do this? - - ANS - -Investment bank
Unemployment rate is which type of economic indicator? - - ANS - -Lagging
