Respond with detailed explanation

21. Businesses that contribute money to local educational, cultural, and training programs are showing social responsibility to their A. customers. C. communities. B. employees. D. stockholders. 22. Which of the following demonstrates the interrelationship among primary business activities: A. A new product is introduced, so business advertisements must adjust in response. B. A business changes its goals, so its strategies and tactics change, too. C. One business activity changes, so the others must adjust in response. D. A business manager becomes vice president, so his/her department must adjust to the change. 23. A higher standard of living is achieved in a country when productivity A. and population increase at a similar rate. C. increases at a rate faster than population. B. remains the same and population increases. D. decreases and population remains the same. Which of the following personal traits would be affected by your physical health: A. Self-confidence C. Gender B. Cultural background D. Ethnic heritage 25. One reason why ethics is often a consideration when providing information is because of the issue of A. respect. C. safety. B. privacy. D. diversity. 26. Why do many businesses develop programs and activities to help reduce employee stress? A. To exhibit empathy C. To eliminate conflict B. To encourage creativity D. To maintain productivity 27. A credit plan that requires a signed contract, a down payment, and the balance to be paid over a specific period of time is called __________ credit. A. revolving C. open B. installment D. regular 28. The amount of interest you earn in a typical savings account is about A. 11 percent. C. one percent. B. 10 percent. D. 15 percent. 29. If you are 17 right now, what is the best age to begin investing? A. 27 C. 17 B. 32 D. 25 30. How do finance companies commonly raise capital? A. Investing deposits from savers B. Investing funds from premium payments C. Issuing notes, bonds, and other obligations D. Establishing mutual funds and investment banks 31. Mortgages and government bonds are examples of A. debt instruments. C. unrated investments. B. equity products. D. interest-free services. 32. Debt markets buy and sell ___________, and equity markets buy and sell _________. A. corporate stock, certificates of deposit C. grain, gold B. government bonds, corporate stock D. gold, government bonds 33. A primary factor that has led to the consolidation of financial firms is the desire A. for fewer products. C. to lower costs. B. for fewer assets. D. to lower risks. 34. The Money for You Bank recently merged with the Keeping You Safe Insurance Company. The merger is an example of __________ in the finance industry. A. consolidation C. tactical planning B. convergence D. licensing 35. Falling interest rates typically cause A. stock prices to increase. C. a stock market to crash. B. stock prices to decrease. D. no change in stock prices. SAMPLE FINANCE EXAM 4 36. When an emerging market suffers an economic decline, foreign investors usually A. help the emerging market to recover economically. B. use the opportunity to invest more in the emerging market. C. quickly withdraw their money from the emerging market. D. pay less for each transaction in the emerging market. 37. Which of the following has accelerated the globalization of financial markets: A. An expansion of protectionism practices B. The reduction of government regulations C. The movement toward fixed exchange rates D. A decrease in foreign access to domestic markets 38. April is a college student who wants to open a bank account for the first time. She has $500 cash to deposit in the account initially. The bank she chooses is not near her dorm, and it's difficult for her to get there. She has a part-time job and receives a bi-weekly paycheck that will be directly deposited into her account. Which of the following types of accounts should she ask for at the bank: A. Checking C. Money market B. Savings D. Certificate of deposit 39. Which of the following is not a standard financial statement: A. Income statement C. Shareholder sheet B. Balance sheet D. Cash flow statement 40. What does an income statement show about a company over a period of time? A. Profitability C. Equity B. Reliability D. Liabilities