Finance Series

Which of the following characteristic of a legally binding:

• The contract must include an expiration date

• One of the parties must be in agreement

• The contract must be written and signed

• Something of value must be exchanged

An important purpose of regulations in the finance industry is to

• limit the amount of money individuals can earn

• prevent the banking system

• Challenge the integrity of the financial system

• ensure companies are held accountable for product

What is an advantage of using technology in compliance?

• Risk of increased fraud

• Decreased cost

• Ease of transitions

• Increased efficiency

The purpose of customs duties is to

• build relationships between countries

• increase imports and exports.

• protect a country's economy

• develop globalization.

Which of the following examples would be considered illegal insider trading:

• An employee who participates in an employee stock purchase plan buys stock in his company.

• Ian buys stock in his wife's company after learning from her that the firm will post high earnings.

• A government official owns stock in various public corporations.

• Rita's financial advisor predicts that a certain stock will perform well.

Several months ago, Erin convinced Sebastian to invest in her new business that sells health supplements. Erin promised that Sebastian would receive a 10% return on his investment every month. Since investing in Erin's company, though, Sebastian hasn't earned any money on his investment. Instead, Erin seems to have used his investment to financially reward earlier investors. Which type of investment scheme does this example most likely describe?

• Predatory lending

• Annuities scam

• Ponzi scheme

• Prime bank scheme

Devon bought a property for $250,000 and sold it for $300,000. The money he made on the sale is

known as

• estate tax.

• sales revenue.

• disposable income.

• capital gains.

While giving a presentation on the benefits of online advertising, Raleigh shared his personal belief that a

major online advertising campaign could increase yearly sales by 40%. He also explained to his audience, however, that he hadn't done enough research to be sure of that estimation yet. After attending Raleigh's presentation, Tatiana told the CEO that a major online advertising campaign would definitely increase yearly sales by 40%. What mistake did Tatiana make by not actively listening to Raleigh?

• She misunderstood the purpose of online advertising

• She misinterpreted Raleigh's opinion as fact.

• She failed to notice Raleigh's body language

• She thought that Raleigh was in charge of online advertising.

Jori's health teacher asked him to create a presentation to convince others that vaccines are beneficial.

What type of presentation has Jori been asked to create?

• Persuasive

• Informative

• Entertaining

• Analytical

Many businesses use infographics to help persuade readers because

• infographics raise the perception of quality

• original artwork usually takes longer to create

• most people are lazy and don't like to read

• readers spend more time viewing infographics