D076 OA Questions with 100% Correct verified Answers 2024/2025
UNIT 2
What are the main services offered by financial institutions?
1. Deciding which assets to invest in to create wealth in the future
2. Soliciting charitable donations and then managing the distribution of these funds
3. Evaluating sources of funding for a business project, the capital structure of a firm, or actions mana
increase the value of the firm
4. Accepting a wide variety of deposits, offering investment products, providing loans, and brokering
Answer ✔✔ - 4. Accepting a wide variety of deposits, offering investment products, providing lo
financial transactions
Correct! Financial institutions such as banks, insurance companies, and mutual fund companies prov
UNIT 2
What is the main objective of personal financial goals?
1. To maximize stock investments
2. To maximize owner wealth
3. To maximize charity donations
4. To maximize individual utility - Answer ✔✔ - 4. To maximize individual utility
Correct! You set goals and act to increase your satisfaction or happiness by taking care of necessities
UNIT 2
Which task does the financial manager of a firm perform that involves the issuance of new stocks and
1. Deciding on accounting standards
2. Making financing decisions
3. Managing working capital
4. Making investing decisions - Answer ✔✔ - 2. Making financing decisions
Correct! Once investment decisions are made, a financial manager considers different possibilities of
investments. This may include issuing new stocks and bonds.
UNIT 2
Why is understanding the definition of finance important in managing personal finances?
1. It helps individuals act ethically with regard to finances.
2. It helps individuals understand legal issues related to finance.
3. It helps individuals compare the costs and benefits of an action to determine whether to take that a
, 2. Contractual institution
3. Depository institution
4. Investment institution - Answer ✔✔ - 4. Investment institution
Correct! Investment institutions provide individuals and firms access to financial markets.
UNIT 2
Which financial institution specializes in managing and administering retirement funds?
1. Mutual funds
2. Investment banks
3. Private equity
4. Pension funds - Answer ✔✔ - 4. Pension funds
Correct! Pension funds specialize in retirement funds.
UNIT 2
Which type of economic indicator is the consumer price index?
1. Lagging indicator
2. Coincident indicator
3. Forecasting indicator
4. Leading indicator - Answer ✔✔ - 1. Lagging indicator
Correct! CPI usually changes after the economy as a whole changes.
UNIT 2
What does the term ethical refer to?
1. An idea or thing used as a measure, norm, or model in comparative evaluations
2. The accepted standards of conduct that guide a person's behavior
3. Following the laws and rules set by an authority
4. One's beliefs about right and wrong, good and bad, or just and unjust - Answer ✔✔ - 2. The accept
that guide a person's behavior
Correct! Ethical refers to the accepted standards of conduct that guide a person's behavior.
UNIT 2
A company's officers and board of directors are selling their stocks in the firm at higher prices due to
that made the stock seem more valuable than it truly was. Which ethical issue is occurring in this
1. Conflict between work and personal affairs
2. Agency problem due to conflicting interests
UNIT 2
What are the main services offered by financial institutions?
1. Deciding which assets to invest in to create wealth in the future
2. Soliciting charitable donations and then managing the distribution of these funds
3. Evaluating sources of funding for a business project, the capital structure of a firm, or actions mana
increase the value of the firm
4. Accepting a wide variety of deposits, offering investment products, providing loans, and brokering
Answer ✔✔ - 4. Accepting a wide variety of deposits, offering investment products, providing lo
financial transactions
Correct! Financial institutions such as banks, insurance companies, and mutual fund companies prov
UNIT 2
What is the main objective of personal financial goals?
1. To maximize stock investments
2. To maximize owner wealth
3. To maximize charity donations
4. To maximize individual utility - Answer ✔✔ - 4. To maximize individual utility
Correct! You set goals and act to increase your satisfaction or happiness by taking care of necessities
UNIT 2
Which task does the financial manager of a firm perform that involves the issuance of new stocks and
1. Deciding on accounting standards
2. Making financing decisions
3. Managing working capital
4. Making investing decisions - Answer ✔✔ - 2. Making financing decisions
Correct! Once investment decisions are made, a financial manager considers different possibilities of
investments. This may include issuing new stocks and bonds.
UNIT 2
Why is understanding the definition of finance important in managing personal finances?
1. It helps individuals act ethically with regard to finances.
2. It helps individuals understand legal issues related to finance.
3. It helps individuals compare the costs and benefits of an action to determine whether to take that a
, 2. Contractual institution
3. Depository institution
4. Investment institution - Answer ✔✔ - 4. Investment institution
Correct! Investment institutions provide individuals and firms access to financial markets.
UNIT 2
Which financial institution specializes in managing and administering retirement funds?
1. Mutual funds
2. Investment banks
3. Private equity
4. Pension funds - Answer ✔✔ - 4. Pension funds
Correct! Pension funds specialize in retirement funds.
UNIT 2
Which type of economic indicator is the consumer price index?
1. Lagging indicator
2. Coincident indicator
3. Forecasting indicator
4. Leading indicator - Answer ✔✔ - 1. Lagging indicator
Correct! CPI usually changes after the economy as a whole changes.
UNIT 2
What does the term ethical refer to?
1. An idea or thing used as a measure, norm, or model in comparative evaluations
2. The accepted standards of conduct that guide a person's behavior
3. Following the laws and rules set by an authority
4. One's beliefs about right and wrong, good and bad, or just and unjust - Answer ✔✔ - 2. The accept
that guide a person's behavior
Correct! Ethical refers to the accepted standards of conduct that guide a person's behavior.
UNIT 2
A company's officers and board of directors are selling their stocks in the firm at higher prices due to
that made the stock seem more valuable than it truly was. Which ethical issue is occurring in this
1. Conflict between work and personal affairs
2. Agency problem due to conflicting interests
