Strayer FIN100/FIN 100 week 2 quiz (All correct) - 90017

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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
Solution Description

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 ope

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