D076 OA|56 Questions with 100% Correct Answers | Verified|
Question :What are the main services offered by financial
institutions?
- Soliciting charitable donations and then managing the
distribution of these funds
- Accepting a wide variety of deposits, offering investment
products, providing loans, and brokering financial transactions
- Deciding which assets to invest in to create wealth in the
future
- Evaluating sources of funding for a business project, the
capital structure of a firm, or actions managers could take to increase the value of the firm
Correct answer:B. Accepting a wide variety of deposits,
offering investment products, providing loans, and brokering financial transactions
Question :What is the main objective of personal financial
goals?
- To maximize stock investments
- To maximize individual utility
- To maximize charity donations
- To maximize owner wealth
Correct answer:B. To maximize individual utility
Question :Which task does the financial manager of a firm
perform that involves the issuance of new stocks and bonds?
- Making financing decisions
- Managing working capital
- Deciding on accounting standards
- Making investing decisions
Correct answer:A. Making financing decisions
Question :Why is understanding the definition of finance
important in managing personal finances?
- It helps individuals compare the costs and benefits of an
action to determine whether to take that action.
- It helps individuals act ethically with regard to finances.
C.It helps individuals understand legal issues related to finance.
- It allows individuals to find an investment with the highest
return possible.
Correct answer:A. It helps individuals compare the costs and
benefits of an action to determine whether to take that action.
Question :In which type of market would a company issue
bonds or stocks for the first time?
Dealer market
Primary market
Secondary market
Money market
Correct answer:Primary market
Question :Which type of financial institution is a mutual
fund?
Contractual institution