FINANCIAL MANAGEMENT QUIZ QUESTIONS
AND ANSWERS 100% CORRECT!!
, A bond is similar to a loan T or F - ANSWER True
A bond is a debt instrument issued by corporations or governments. - ANSWER True
A syndicate is a group of investors that is temporarily formed to handle the issuance of
new bonds. - ANSWER True
If the price of a particular stock begins to heavily fluctuate, then the specialist will
__________ the spread. - ANSWER Increase the spread
A stock is a share of ______________ in a particular company. - ANSWER Ownership
he New York Stock Exchange is an auction market. - ANSWER True
Some high frequency traders provide liquidity to the rest of the market. - ANSWER True
If providing liquidity becomes more risky, then dealers will __________ the spread -
ANSWER Increase the spread
An IPO is where a company goes public or sells shares to the public for the first time. -
ANSWER True
Without financial markets, exchange would become more costly. - ANSWER True
NYSE daily trading volume has increased over the last 50 years. - ANSWER True
Which type of bond placement - competitive sale or negotiated sale - requires a more
thorough interview process? - ANSWER Negotiated Sale
Accounts payable represents money a firm owes to: - ANSWER Suppliers due to
purchases made on credit
The basic balance sheet equation states that Assets are equal to Liabilities plus
Owner's equity. This is because all assets are - ANSWER Financed either by other
people's money or by the firm's owners' money.
AND ANSWERS 100% CORRECT!!
, A bond is similar to a loan T or F - ANSWER True
A bond is a debt instrument issued by corporations or governments. - ANSWER True
A syndicate is a group of investors that is temporarily formed to handle the issuance of
new bonds. - ANSWER True
If the price of a particular stock begins to heavily fluctuate, then the specialist will
__________ the spread. - ANSWER Increase the spread
A stock is a share of ______________ in a particular company. - ANSWER Ownership
he New York Stock Exchange is an auction market. - ANSWER True
Some high frequency traders provide liquidity to the rest of the market. - ANSWER True
If providing liquidity becomes more risky, then dealers will __________ the spread -
ANSWER Increase the spread
An IPO is where a company goes public or sells shares to the public for the first time. -
ANSWER True
Without financial markets, exchange would become more costly. - ANSWER True
NYSE daily trading volume has increased over the last 50 years. - ANSWER True
Which type of bond placement - competitive sale or negotiated sale - requires a more
thorough interview process? - ANSWER Negotiated Sale
Accounts payable represents money a firm owes to: - ANSWER Suppliers due to
purchases made on credit
The basic balance sheet equation states that Assets are equal to Liabilities plus
Owner's equity. This is because all assets are - ANSWER Financed either by other
people's money or by the firm's owners' money.
