. 3. In which of the following markets would ordinary stock most likely be traded?

A. Loans market

B. Commodities market

C. Capital market

D. Money market

4. Which of the following best defines a financial institution that is owned by its members?

A. Merchant bank

B. Commercial bank

C. Credit union

D. Insurance company

5. A financial institution that is owned by its members and offers them banking services and provides mortgage lending is referred to as a/an .

A. building society B. commercial bank C. credit union

D. insurance company

6. The primary goal of the Financial Manager is: A. minimizing risk

B. maximizing profit C. maximizing wealth D. minimizing returns

7. Wealth maximization as the goal of the firm implies enhancing the wealth of the: A. Board of Directors

B. firms employees

C. federal government

D. firms stockholders

8. Which of the following is NOT a characteristic of common shares?

A. Pre-emptive rights

B. Voting rights

C. Transferability of shares

D. Preference in liquidation

9. Which of the following is NOT one of the primary responsibilities of the financial manager?

A. Preparing financial statements

B. Making financial decisions

C. Forecasting and planning

D. Making investment decisions

10. To what market would a firm go if it needed cash for ninety days?

A. Primary

B. Secondary

C. Capital

D. Money