Instructional Area: Financial Analysis QUESTIONS WITH WELL
VERIFIED ANSWERS
Explain forms of financial exchange (cash, credit, debit, electronic funds transfer, etc.) (PQ) -
answer☑️✔️..cash: money in the form of bills or coins
credit: ability to buy something (or borrow money) with promise of future payment
o secured/: guaranteed by claim against assets (mortgage/utility bill)
unsecured:no collateral assets
o revolving: approved for set amount (HELOC, credit card), balance and minimum fluctuate
monthly, most credit card compound
o installment: set money for set period, fixed payments (mortgage, car loans)
debit: decreasing capital, liability or revenue; increasing asset or expense, taking funds directly
from bank acoount, good for those with bad credit or accountability
EFT: electronic funds transfer - transfer of funds initiated through electronic terminal (e.g. ATM,
online banking, ordering goods online, online funds transfer)
o PIN Debit: EFT at point of sale - online (PIN) vs. offline (signature) vs. purse card debit
cheque: paper document signed by drawer; cashed by drawee (bank) for payee
Identify types of currency (paper money, coins, banknotes, government bonds, treasury notes,
etc.) (PQ) - answer☑️✔️..currency: tokens used as money in a country
, paper money: includes banknotes, cheques, drafts, notes - represent money in liquid form
banknotes: promissory note issued by bank, intended to circulate as money
government bonds: debt instrument (1+ years) issued by gov't to raising capital by borrowing
treasury notes: debt obligation issued by gov't, with maturity between 1 and 7 years
Describe functions of money (medium of exchange, unit of measure, store of value) (PQ) -
answer☑️✔️..medium of exchange: item widely accepted in exchange for goods and services
in market
unit of measure: system of units by means of which a quantity is accounted for and expressed
store of value: tradeable commodity, currency, or capital; can be stored for future use
Describe sources of income (wages/salaries, interest, rent, dividends, transfer payments, etc.)
(PQ) - answer☑️✔️..wages/salaries: compensation for work (in proportion to work done/on
regular basis)
interest: fee charged by lender to borrower for use of borrowed money
rent: payment for use of space or property
dividends: taxable payment paid out to shareholders out of company's current/retained
earnings
VERIFIED ANSWERS
Explain forms of financial exchange (cash, credit, debit, electronic funds transfer, etc.) (PQ) -
answer☑️✔️..cash: money in the form of bills or coins
credit: ability to buy something (or borrow money) with promise of future payment
o secured/: guaranteed by claim against assets (mortgage/utility bill)
unsecured:no collateral assets
o revolving: approved for set amount (HELOC, credit card), balance and minimum fluctuate
monthly, most credit card compound
o installment: set money for set period, fixed payments (mortgage, car loans)
debit: decreasing capital, liability or revenue; increasing asset or expense, taking funds directly
from bank acoount, good for those with bad credit or accountability
EFT: electronic funds transfer - transfer of funds initiated through electronic terminal (e.g. ATM,
online banking, ordering goods online, online funds transfer)
o PIN Debit: EFT at point of sale - online (PIN) vs. offline (signature) vs. purse card debit
cheque: paper document signed by drawer; cashed by drawee (bank) for payee
Identify types of currency (paper money, coins, banknotes, government bonds, treasury notes,
etc.) (PQ) - answer☑️✔️..currency: tokens used as money in a country
, paper money: includes banknotes, cheques, drafts, notes - represent money in liquid form
banknotes: promissory note issued by bank, intended to circulate as money
government bonds: debt instrument (1+ years) issued by gov't to raising capital by borrowing
treasury notes: debt obligation issued by gov't, with maturity between 1 and 7 years
Describe functions of money (medium of exchange, unit of measure, store of value) (PQ) -
answer☑️✔️..medium of exchange: item widely accepted in exchange for goods and services
in market
unit of measure: system of units by means of which a quantity is accounted for and expressed
store of value: tradeable commodity, currency, or capital; can be stored for future use
Describe sources of income (wages/salaries, interest, rent, dividends, transfer payments, etc.)
(PQ) - answer☑️✔️..wages/salaries: compensation for work (in proportion to work done/on
regular basis)
interest: fee charged by lender to borrower for use of borrowed money
rent: payment for use of space or property
dividends: taxable payment paid out to shareholders out of company's current/retained
earnings
