QUESTION When a company sells stock to the general public for the first time, it is called an initial public offering. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Initial public offering is the name given to a company’s first-time sale of its stock to the general public.
Date: September 3rd, 2020
QUESTION With deregulation, the willingness of financial institutions and individuals to take on risk decreased. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: With deregulation came the trend of financial institutions and individuals taking on great risk.
Date: September 3rd, 2020
QUESTION One of the Fed’s roles is to clear checks between different banks. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: It is the role of the Fed to clear checks between different banks.
Date: September 3rd, 2020
QUESTION Which of the following is one of the three parts of a financial plan? A) taxation B) spending C) saving D) forecasting E) financial leverage ANSWER Answer: D Explanation: D) A financial plan has three parts: forecasting, budgeting, and financial controls.
Date: September 3rd, 2020
QUESTION Selling stock means selling ownership shares in a firm. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: To sell stock is to sell ownership shares in a firm.
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
QUESTION Both government-issued coins and paper money are referred to as currency. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Government-issued coins and paper money are both referred to as currency.
Date: September 3rd, 2020
QUESTION Currency represents roughly 3/4 of all media of exchange in the United States. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Currency represents only about 1/3 of all media of exchange in the United States.
Date: September 3rd, 2020
