1

• 1 out of 1 points

The Small Business Administration assists in the financing of small businesses in which of the following ways?

• Answers:By participating jointly with banks in extending loans to businesses
• By making direct loans to businesses
• By guaranteeing bank loans to businesses
• All of the above

Question 2

• 0 out of 1 points

Under which of the following business organization do the owners have UNLIMITED liability for all the debts of the company?

• Answers:Subchapter S Corporation
• Corporation
• Limited Partnership both general and limited
• Proprietors and Partnership

Question 3

• 0 out of 1 points

is the method used to determine the future value of a sum let today.

• Answers:Discounting
• Compounding
• Present value
• A consol

Question 4

• 1 out of 1 points

The three functions of money are:

• Answers:Medium of exchange, store of purchasing power, and measure of liquidity
• Conduit for international trade, store of purchasing power, and standard of value
• Medium of exchange, store of purchasing power, and standard of value
• Inflation hedge, measure of liquidity, medium of exchange

Question 5

• 0 out of 1 points

Business firms hold cash and marketable securities for which of the following reasons or motives?

• Answers:Transactions, precautionary, and goodwill motives
• Precautionary, speculative, and goodwill motives
• Transactions. precautionary, and speculative motives
• Precautionary, goodwill, and transactions motives

Question 6

• 0 out of 1 points

Which one of the following is an example of indirect financing?

• Answers:Corporate bonds
• Corporate stocks
• Business bank loan
• U.S. government bonds

Question 7

• 0 out of 1 points

Which one of these financial intermediaries focuses on maintaining orderly conditions in the foreign exchange market?

• Answers:Cornmercial banks
• The World Bank
• International Monetary Fund
• Commercial finance companies

Question 8

• 0 out of 1 points

Which of the following is not a major component of the U.S. Gross national product?

• Answers:Government purchases of goods and services
• Gross private savings
• Personal consumption expenditures
• Net exports of goods and services

Question 9

• 0 out of 1 points

The most important form of short-term business financing is:

• Answers:Trade credit
• Accounts-receivable financing
• A revolving credit agreement
• Inventory Loan

Question 10

• 0 out of 1 points

Which one of the following financial statements conveys a relationship to equality between assets and liabilities plus owners' equity?

• Answers:Income Statement
• Statement of Cash Flows
• Balance Sheet
• Statement of Owner's Equity

Question 11

• 0 out of 1 points

A famous athlete is awarded a $9 million contract that stipulates equal payments to be made monthly over a period of five years. To determine what such a contract is worth today, you would need to use:

• Answers:Present value factors
• Future value factors
• Present value factors of an annuity
• Future value factors of an annuity

Question 12

• 1 out of 1 points

A loan that is repaid in equal payments over a specified time period is called a(n):

• Answers:Discount loan
• Balloon loan
• Amortized loan
• None of the above

Question 13

• 1 out of 1 points

The capital stock of each Federal Reserve Bank:

• Answers:Is owned by the Foard of Governors of the Fed
• Can be issued in an emergency to provide funds for the Fed
• Is owned by members of the individual Federal Reserve Banks
• Has been reserved for purchase of the U.S. Treasury

Question 14

• 0 out of 1 points

Sales and purchases of securities by the Federal Reserve System are carried out by:

• Answers:The U.S. Treasury
• The Federal Advisory Council
• The Federal Open Market Committee
• The General Accounting Office

Question 15

• 1 out of 1 points

Money is most correctly defined as anything that:

• Answers:Is generally accepted as payment of goods and services
• Has a general value in exchange
• Is designed by the government as a means of discharging obligations
• Is accepted by the government as means of paying taxes

Question 16

• 0 out of 1 points

The goal of a business should be

• Answers:Maximization of account profit
• Maximization of the owner's wealth
• Maximization of assets
• Maximization of sales

Question 17

• 0 out of 1 points

U.S. dollars-denominated deposits held in banks outside the United States are referred to as:

• Answers:Euro dollars
• Federal Funds
• Bankers acceptances
• Negotiable certificates of deposit

Question 18

• 0 out of 1 points

Which of the following are not bond rating agencies?

• Answers:Standard and poor's
• Fitch's
• Duff and Phelps
• All the above are rating agencies
• None of the above are rating agencies

Question 19

• 0 out of 1 points

Existing securities are traded:

• Answers:Only over the counter market
• In the primary market
• In the secondary market
• Only on organized exchanges

Question 20

• 0 out of 1 points

Career opportunities in finance involving both treasury and control functions are generally associated with:

• Answers:Business financial management
• Financial intermediaries
• Securities markets
• Government organizations

Question 21

• 0 out of 1 points

Working capital does not include:

• Answers:Cash
• Accounts receivable
• Marketable securities
• Property, plant, and equipment

Question 22

• 0 out of 1 points

A short-term bank loan that is unsecured is referred to as:

• Answers:A line of credit
• An account-receivable loan
• Inventory loan
• A life insurance policy loan

Question 23

• 1 out of 1 points
• The most important savings surplus unit in the economy is:
• Answers:The savings of individuals
• Corporate
• U.S. government saving
• State and local government savings

Question 24

• 1 out of 1 points

The time value of money is represented by the

• Answers:Demand for loanable funds
• Inflation rate
• Interest rate
• Terms of trade

Question 25

• 0 out of 1 points

An investment will mature in 25 years. Its maturity value is $3,000. If the discounted rate is 10% what is the present value of the investment?

• Answers:178
• 258
• 277
• 362

Question 26

• 1 out of 1 points

Which of the following is NOT considered to be one of three major forms of business ownership in the United States?

• Answers:Proprietorship
• Corporation
• Public Limited Company
• Partnership

Question 27

• 0 out of 1 points

An organization that engages in account receivable financing by purchasing the accounts outright is referred to as a:

• Answers:Factor
• Commercial paper house
• Field warehouse firm
• Commercial finance company

Question 28

• 1 out of 1 points

Which of the following instruments generates the largest amount of funds annually in the Credit Market?

• Answers:Tax-exempt bonds
• Government agency bonds
• Mortgages
• Bank loans

Question 29

• 0 out of 1 points

Savings is the accumulation of cash and other financial assets and is generally classified into which of the following two categories?

• Answers:Voluntary and corporate savings
• Personal and governmental savings
• Primary and secondary savings
• Voluntary and contractual savings

Question 30

• 1 out of 1 points

interest earned only on an investment principal or original amount is referred to as:

• Answers:Simple interest
• Compound interest
• Discount interest
• Annuity interest

Question 31

• 0 out of 1 points

A survey of financial managers found they spend nearly what percent of their time dealing with financial planning, budgeting, and working capital issued?

• Answers:10 percent
• 30 percent
• 50 percent
• 70 percent

Question 32

• 0 out of 1 points

An important reason why the Fed carries out its operations through its Open Market Committee is that:

• Answers:There is a legal requirement
• It is less costly
• Approval by the U.S. Treasury is not required
• Public announcement is not required

Question 33

• 0 out of 1 points

Which of the following claims to wealth traded in U.S. financial markets is a capital market security or instrument?

• Answers:Commercial paper
• Treasury bills
• Negotiable certificates of deposit
• Corporate stocks

Question 34

• 0 out of 1 points

Which of the following claims to wealth traded in U.S. financial markets is a money market?

• Answers:Commercial paper
• Treasury notes and bonds
• Corporate bonds
• Real estate mortgages

Question 35

• 1 out of 1 points

The basic requirements for an effective financial system in a developed economy include:

• Answers:A monetary system
• A savings investment process
• Markets for the transfer of financial assets
• All of the above