Unit 1
When Alana prepares a report so that all financial data is clearly disclosed, she is ensuring that the information is: A. flexible. B. relevant. C. timely. D. transparent
D. transparent.
Which is an advantage of a money market account over a savings account?
A. The rate of return on a money market account is significantly better. B. Money market accounts provide corporate ownership rights. C. One can often write checks from a money market account. D. Money market accounts are insured by the FDIC.
C. One can often write checks from a money market account.
A place where investors can trade securities that have been issued by a corporation is known as a/an: A. primary market. B. secondary market. C. stock market index. D. initial public offering.
B. secondary market.
A private securities transaction exists when a representative: A. has a joint account with a family member. B. makes a trade from his personal account. C. is engaged with an outside business. D. is selling away.
D. is selling away
One factor that has stimulated financial globalization is the increase in: A. protectionism. B. foreign regulation. C. domestic competition. D. investment preferences.
C. domestic competition.
One of the roles of ethics in finance is to encourage business employees to: A. prepare operating budgets. B. increase company profits. C. make the right decisions. D. sell to customers.
C. make the right decisions.
Ownership investments are ideal for investors who are: A. risk-averse. B. risk-tolerant. C. close to retirement. D. just beginning to invest.
B. risk-tolerant.
Which is an appropriate investment objective for a mutual fund with a buy-and-hold approach? A. covering a broad range of industries B. seeking long-term capital appreciation C. investing primarily in a diversified portfolio D. investing in stocks with superior growth potential
B. seeking long-term capital appreciation
The process of transforming text into an unintelligible string of characters that can be transmitted online with the highest amount of security and then can be interpreted when it reaches the secure destination is known as: A. a firewall. B. encryption. C. data security. D. internal threats.
B. encryption.
Which is an economic condition that consumer spending usually measures? A. competition B. depreciation C. employment D. infrastructure
C. employment
Which is the most likely reason for faster-than-average employment growth of financial analysts and personal financial advisors?
A. The U.S. population is worse off financially than before.
B. Globalization of the securities markets makes investing more complicated.
C. The U.S. population likes to use the internet to handle their financial issues.
D. Financial analysts and personal financial advisors do not need a college degree.
B. Globalization of the securities markets makes investing more complicated.
The direction of a client's cash and securities by a financial services company, usually an investment bank, or an individual is known as: A. a lockbox. B. a vendor lease. C. private placement. D. asset management.
D. asset management.
An individual who often works as part of a financial institution and is primarily concerned with raising capital for corporations, governments, or other entities is called a/an: A. market consultant. B. investment banker. C. mutual fund manager. D. securities sales agent (broker).
B. investment banker.
Which federal agency is responsible for collecting complaints about identity theft and also prevents fraudulent, deceptive, and unfair business practices? A. Federal Bureau of Investigation B. Federal Complaint Commission C. Federal Identity Theft Agency D. Federal Trade Commission
D. Federal Trade Commission
One factor that contributed to financial globalization was the shift of many developed countries from: A. floating exchange rates to fixed exchange rates. B. fixed exchange rates to floating exchange rates. C. declining exchange rates to pegged exchange rates. D. pegged exchange rates to declining exchange rates.
B. fixed exchange rates to floating exchange rates.
Julie, a newly promoted manager, lacks the time to properly prepare employee work schedules and assigns this duty to the assistant manager. Which time management technique is Julie using?
A. delegating activities
B. standardizing tasks
C. setting objectives
D. procrastinating
A. delegating activities
What type of service does a bank provide to a business that needs to borrow funds for a short period of time? A. mortgage B. line of credit C. installment loan D. certificate of deposit
B. line of credit
The price-earnings (PE) ratio measures: A. stock price compared to sales. B. stock price compared to shareholders' equity. C. management's ability to streamline operations. D. investors' expectations about a company's performance.
D. investors' expectations about a company's performance.
One way of protecting data from unauthorized modification and/or corruption at rest and during transmission among information systems is to implement: A. a firewall. B. encryption. C. internal threats. D. network controls.
D. network controls.
An insurance underwriter: A. determines repair costs for insurance claim settlements. B. processes applications for insurance policies and any requested changes to these policies. C. reviews individual applications for insurance to evaluate the degree of risk involved and determine the acceptance of applications. D. reviews settled insurance claims to determine that payments and settlements have been made in accordance with company practices and procedures.
C. reviews individual applications for insurance to evaluate the degree of risk involved and determine the acceptance of applications.
An amount of money that a business owes to someone else is referred to as:
A. equity. B. an asset. C. accounts payable.
D. accounts receivable.
C. accounts payable
Proofing, encoding, capturing, and sorting are all steps in which banking process? A. check payment B. consumer lending C. cash management D. commercial lending
A. check payment
A bond's profit or loss over a period of time at a particular amount is called the: A. yield. B. liquidity. C. maturity. D. bid price.
A. yield.
If an investor requests additional information about a trade confirmation that he/she received, the requested information must be furnished to him/her within: A. thirty days of the request. B. five business days of the request. C. five business days after the date of the transaction. D. fifteen business days after the date of the transaction.
B. five business days of the request.
Ups and downs in the level of economic activity over a period of time are called a/an: A. business cycle. B. inventory level. C. economic growth. D. economic system.
A. business cycle.