Strayer FIn100/FIn100 week 2 quiz (Perfect Answer)

Question 1

1. A basic requirement for an effective financial system is a monetary system that performs which of the following financial functions?

Answer

formation and transferring of money

storing gold and silver to back up money

creating jobs

transferring real assets

2 points

Question 2

____________________ in business involves making decisions relating to the efficient use of financial resources in the production and sale of goods and services.

Answer

Financial management

Financial economics

Investment management

Asset allocation

2 points

Question 3

An area of finance that refers to the physical locations or electronic forums that facilitate the flow of funds among investors, businesses, and governments is called:

Answer

financial management

investments

financial institutions

financial markets

2 points

Question 4

The financial environment:

Answer

encompasses the financial markets and global interactions that contribute to an efficiently operating economy.

encompasses the financial institutions and financial markets that contribute to an efficiently operating economy.

encompasses the financial system, financial institutions, financial markets, business firms, individuals, and global interactions that contribute to an efficiently operating economy.

none of the above.

2 points

Question 5

The theory of ___________________ implies that information is quickly embedded in prices making it difficult for investors to "beat the market."

Answer

stock investing

efficient markets

portfolio management

asset allocation

2 points

Question 6

________________ involves making decisions relating to issuing and investing in stocks and bonds.

Answer

Financial economics

Financial management

Investment management

Asset allocation

2 points

Question 7

The primary goal of the financial manager of a profit-seeking organization is to:

Answer

maximize market share

maximize the owners’ wealth

increase sales and profit

have healthy cash flow

2 points

Question 8

An area of finance that involves the study of organizations or intermediaries that help the financial system operate efficiently and transfer funds from savers and investors to individuals, businesses, and governments that seek to spend or invest the funds in physical assets (inventories, buildings, and equipment) is called:

Answer

financial management

investments

financial institutions

financial markets

2 points

Question 9

____________________ provide the record-keeping mechanism for showing ownership of the financial instruments used in the flow of financial funds between savers and borrowers and record revenues, expenses, and profitability of organizations that produce and exchange goods and services.

Answer

Financial Managers

Accountants

Operations Managers

Statisticians

2 points

Question 10

Rational investors would consider an investment in a risky business venture only if they feel the expected return is high enough to justify the

Answer

greater risk.

higher cost.

longer useful life.

more complex designs.

2 points

Question 11

The U.S. bimetallic standard was based on:

Answer

gold and platinum

silver and gold

gold and copper

silver and copper

2 points

Question 12

The only paper money of significance in the economy today is:

Answer

silver certificates

demand deposits

greenbacks

Federal Reserve notes

2 points

Question 13

_____________ is a promise of future payment issued by a firm and guaranteed by a bank that is used to finance international trade with typical maturities ranging from one to six months.

Answer

A negotiable certificate of deposit (NCD)

A repurchase agreement

Commercial paper

A banker's acceptance

2 points

Question 14

When it is a means of paying for goods and services and discharging debts, money is referred to as a:

Answer

store of purchasing power

medium of exchange

standard of value

liquid asset

2 points

Question 15

Inflation is:

Answer

an increase in the purchasing power of money

a decrease in the quality of goods and services

an increase in the prices of goods and services not offset by increases in the quality of those goods and services

a measure of the money supply

2 points

Question 16

The supply of a currency in international markets depends largely on the:

Answer

Federal Reserve System

imports of the issuing country

amount of exports that currency will buy from the issuing country

confidence of market participants in the restraint and ability of the monetary authority issuing the currency

2 points

Question 17

Paper money fully backed by a precious metal and issued by the government is called:

Answer

fiat money

representative full-bodied money

full-bodied money

credit money

2 points

Question 18

Deposit money is backed by:

Answer

Gold

Silver

creditworthiness of the issuer

creditworthiness of the depository institution

2 points

Question 19

Which of the following describes the basic function of money?

Answer

store of purchasing power

standard of value

medium of exchange

liquidity

2 points

Question 20

A ____________ is a short-term debt instrument issued by commercial banks in denominations of $100,000 or more with typical maturities ranging from one month to one year that have an active secondary market that allows short-term investors to easily match their cash or liquidity needs when they arise.

Answer

negotiable certificate of deposit (NCD)

A repurchase agreement

government bond

money market security

 

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Answer:

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