Financing Decision
What are the three primary types of decisions a financial manager must make?
Investment, Financing, and Dividend decisions.
Who are “surplus units”?
People who have extra money to save
What goes up but never comes down?
Your age.
What is financial innovation?
New ideas and technologies in financial services
BONUS ;)
+100
Which decision is specifically concerned with the "financing-mix" or capital structure of an organization?
The Financing Decision.
What is maturity transformation?
Turning short-term savings into long-term loans
What is always in front of you but can’t be seen?
The future.
BONUS :)
+200
What are the three main components of financial planning?
Current Resources, Investment Options, Financial Goals
BONUS :)
+300
What does efficient allocation mean?
Money goes to the most productive investments
What has cities, rivers, and roads but no houses or people?
A map.
What is the main purpose of microfinance?
Provide financial services to low-income individuals
How much money is usually recommended in an emergency fund?
At least 3 months of expenses
Investment decisions are often referred to by what other technical name?
Capital Budgeting Decisions.
You will answer so as not to lose points, if you answer incorrectly, you will lose 500 points.(-500 or 0)
question: What is the purpose of derivatives in financial markets?
Hedging risk or speculation
What belongs to you but other people use it more than you do?
Your name.
Which factor is most important for the development of financial innovation?
Technological advancement
Which investment usually helps beat inflation in the long term?
Equity investments
What is the primary objective of a financial manager when balancing debt and equity?
To create an optimum capital structure that maximizes shareholder wealth (market price of shares).
Why is capital mobilization important in an economy?
It combines small savings to fund large projects
You will answer so as not to lose points, if you answer incorrectly, you will lose 500 points.(-500 or 0)
question: What can you keep after giving it to someone?
a promise.
Which financial innovation mainly helps poor and low-income people access financial services?
Microfinance
What is portfolio rebalancing?
Adjusting investment proportions to maintain desired asset allocation