Business

Which two types of budgets are referred to as financial budgets? A) c

QUESTION Which two types of budgets are referred to as financial budgets? A) capital budgets and cash budgets B) capital budgets and operating budgets C) cash budgets and operating budgets D) cash budgets and master budgets E) master budgets and operating budgets   ANSWER Answer: A Explanation: A) Capital budgets and cash budgets are called […]

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Date: September 3rd, 2020

Subprime loans are loans for people with blemished or limited credit h

QUESTION Subprime loans are loans for people with blemished or limited credit histories, which carry a higher rate of interest than prime loans to compensate for increased credit risk. Indicate whether the statement is true or false.   ANSWER Answer: TRUE Explanation: Subprime loans are loans for people with blemished or limited credit histories, which […]

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Date: September 3rd, 2020

Short-term financing is typically needed when a company decides to mak

QUESTION Short-term financing is typically needed when a company decides to make a major investment. Indicate whether the statement is true or false.   ANSWER Answer: FALSE Explanation: Short-term financing can help a company meet current operating needs, but long-term financing is typically needed when a company decides to make a major investment, such as […]

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Date: September 3rd, 2020

What is the name given to the overall business function of obtaining f

QUESTION What is the name given to the overall business function of obtaining funds for a company and managing them to accomplish the company’s objectives? A) finance B) forecasting C) budgeting D) asset collection E) capital expenditure   ANSWER Answer: A Explanation: A) Finance is the business function of obtaining funds for a company and […]

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Date: September 3rd, 2020

Although the Federal Reserve is the central bank of the United States,

QUESTION Although the Federal Reserve is the central bank of the United States, it does not control the U.S. money supply. Indicate whether the statement is true or false.   ANSWER Answer: FALSE Explanation: The Federal Reserve is the central bank of the United States and it DOES control the U.S. money supply.

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Date: September 3rd, 2020

The only government organization that offers financial protection for

QUESTION The only government organization that offers financial protection for money in banks, savings and loans, and credit unions is the FDIC. Indicate whether the statement is true or false.   ANSWER Answer: FALSE Explanation: Three different government organizations, the FDIC, SAIF, and NCUA, offer financial protection for money in banks, savings and loans, and […]

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Date: September 3rd, 2020