TAMU FINC 341 Exam 1 – Financial Management
Fundamentals (Guyton Exam)|| GRADED A+|| LATEST
UPDATE 2025/26
Current head of the federal reserve: -CORRECTANSWER Jay Powell
Current unemployment rate -CORRECTANSWER 3.9%
An inflation rate under ____ means we're ____ -CORRECTANSWER 4%, fully
employed
"Loading the gun" means: -CORRECTANSWER the fed bringing interest rates up
"Firing the gun" means: -CORRECTANSWER the fed is bringing interest rates down
The current short term treasury rate is ____ -CORRECTANSWER 1.75%
Recently, the NASDAQ went over ____ -CORRECTANSWER 8000
The number one goal of management is to: -CORRECTANSWER Maximize the
company stock price
The current U.S. GDP is: -CORRECTANSWER 4.27%
,An inverted yield curve is indicated by: -CORRECTANSWER 1-year treasuries are
higher than 10-year
Short term are higher than long term investments
When inflation is equal to unemployment: -CORRECTANSWER We typically see a
recession
The fed controls what type of interest rates? -CORRECTANSWER 1-year short term
rates
The market price of stock is: -CORRECTANSWER what you would pay for a stock in
the market right now
The intrinsic value of stock is: -CORRECTANSWER what a stock is worth based on all
publicly available information
The _________ theory states that the stock market always tries to be in ______
meaning stocks approach _______ -CORRECTANSWER Efficient markets theory
Equillibrium
Their intrinsic value
, In a business relationship, stockholders are the _____ and managers are an ______ -
CORRECTANSWER Principle
Agent
_____ is the name of an outspoken stockholder who used direct intervention with the
company _____ -CORRECTANSWER Carl Icahn
Apple
______, or less politically correct, _______ are people who take over companies with
high potential but low performance -CORRECTANSWER Activists
Raiders
Why is _____ sometimes referred to as "Operating Income" -CORRECTANSWER
EBIT, because it is the income the company earns if it didn't have to pay taxes or
interest on its debt
Which 2 companies currently have a $1 trillion market share? -CORRECTANSWER
Apple and Amazon
Fundamentals (Guyton Exam)|| GRADED A+|| LATEST
UPDATE 2025/26
Current head of the federal reserve: -CORRECTANSWER Jay Powell
Current unemployment rate -CORRECTANSWER 3.9%
An inflation rate under ____ means we're ____ -CORRECTANSWER 4%, fully
employed
"Loading the gun" means: -CORRECTANSWER the fed bringing interest rates up
"Firing the gun" means: -CORRECTANSWER the fed is bringing interest rates down
The current short term treasury rate is ____ -CORRECTANSWER 1.75%
Recently, the NASDAQ went over ____ -CORRECTANSWER 8000
The number one goal of management is to: -CORRECTANSWER Maximize the
company stock price
The current U.S. GDP is: -CORRECTANSWER 4.27%
,An inverted yield curve is indicated by: -CORRECTANSWER 1-year treasuries are
higher than 10-year
Short term are higher than long term investments
When inflation is equal to unemployment: -CORRECTANSWER We typically see a
recession
The fed controls what type of interest rates? -CORRECTANSWER 1-year short term
rates
The market price of stock is: -CORRECTANSWER what you would pay for a stock in
the market right now
The intrinsic value of stock is: -CORRECTANSWER what a stock is worth based on all
publicly available information
The _________ theory states that the stock market always tries to be in ______
meaning stocks approach _______ -CORRECTANSWER Efficient markets theory
Equillibrium
Their intrinsic value
, In a business relationship, stockholders are the _____ and managers are an ______ -
CORRECTANSWER Principle
Agent
_____ is the name of an outspoken stockholder who used direct intervention with the
company _____ -CORRECTANSWER Carl Icahn
Apple
______, or less politically correct, _______ are people who take over companies with
high potential but low performance -CORRECTANSWER Activists
Raiders
Why is _____ sometimes referred to as "Operating Income" -CORRECTANSWER
EBIT, because it is the income the company earns if it didn't have to pay taxes or
interest on its debt
Which 2 companies currently have a $1 trillion market share? -CORRECTANSWER
Apple and Amazon
