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FINANCE SKILLS FOR MANAGERS -
D076 OFFICIAL EXAM QUESTIONS
WITH ANSWERS.
UNIT 2
What are the main services offered by financial institutions? -
correct answer -Accepting a wide variety of deposits, offering
investment products, providing loans, and brokering financial
transactions
(Correct! Financial institutions such as banks, insurance
companies, and mutual fund companies provide these services.)
What is the main objective of personal financial goals? - correct
answer -To maximize individual utility
(Correct! You set goals and act to increase your satisfaction or
happiness by taking care of necessities and achieving priorities.)
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Which task does the financial manager of a firm perform that
involves the issuance of new stocks and bonds? - correct answer
-Making financing decisions
(Correct! Once investment decisions are made, a financial
manager considers different possibilities of financing sources for
the investments. This may include issuing new stocks and bonds.)
Why is understanding the definition of finance important in
managing personal finances? - correct answer -It helps
individuals compare the costs and benefits of an action to
determine whether to take that action.
(Correct! Any financial decision should make sense in terms of its
costs and benefits.)
In which type of market would a company issue bonds or stocks
for the first time? - correct answer -Primary market
(Correct! This is the purpose of a primary market.)
Which type of financial institution is a mutual fund? - correct
answer -Investment institution
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(Correct! Investment institutions provide individuals and firms
access to financial markets.)
Which financial institution specializes in managing and
administering retirement funds? - correct answer -Pension funds
(Correct! Pension funds specialize in retirement funds.)
Which type of economic indicator is the consumer price index? -
correct answer -Lagging indicator
(Correct! CPI usually changes after the economy as a whole
changes.)
What does the term ethical refer to? - correct answer -The
accepted standards of conduct that guide a person's behavior
(Correct! Ethical refers to the accepted standards of conduct that
guide a person's behavior.)
FINANCE SKILLS FOR MANAGERS -
D076 OFFICIAL EXAM QUESTIONS
WITH ANSWERS.
UNIT 2
What are the main services offered by financial institutions? -
correct answer -Accepting a wide variety of deposits, offering
investment products, providing loans, and brokering financial
transactions
(Correct! Financial institutions such as banks, insurance
companies, and mutual fund companies provide these services.)
What is the main objective of personal financial goals? - correct
answer -To maximize individual utility
(Correct! You set goals and act to increase your satisfaction or
happiness by taking care of necessities and achieving priorities.)
, Page | 2
Which task does the financial manager of a firm perform that
involves the issuance of new stocks and bonds? - correct answer
-Making financing decisions
(Correct! Once investment decisions are made, a financial
manager considers different possibilities of financing sources for
the investments. This may include issuing new stocks and bonds.)
Why is understanding the definition of finance important in
managing personal finances? - correct answer -It helps
individuals compare the costs and benefits of an action to
determine whether to take that action.
(Correct! Any financial decision should make sense in terms of its
costs and benefits.)
In which type of market would a company issue bonds or stocks
for the first time? - correct answer -Primary market
(Correct! This is the purpose of a primary market.)
Which type of financial institution is a mutual fund? - correct
answer -Investment institution
, Page | 3
(Correct! Investment institutions provide individuals and firms
access to financial markets.)
Which financial institution specializes in managing and
administering retirement funds? - correct answer -Pension funds
(Correct! Pension funds specialize in retirement funds.)
Which type of economic indicator is the consumer price index? -
correct answer -Lagging indicator
(Correct! CPI usually changes after the economy as a whole
changes.)
What does the term ethical refer to? - correct answer -The
accepted standards of conduct that guide a person's behavior
(Correct! Ethical refers to the accepted standards of conduct that
guide a person's behavior.)
