Finance Quiz #2

A financial institution fails to comply with an important government regulation. The financial institution will most likely

• Pay a fine

• Be restricted from conducting business abroad

• Avoid an audit

• Be forced to sell 40% of their assets

What is capital?

• The format which accountants must use in the general ledger

• Assets used for the production of goods and services

• An asset that a lender accepts as security for a loan

• A theory that dictates the tax percentage in a region

An individual or business can minimize capital losses on investment property by

• Liquidating remaining assets

• Renegotiating property insurance premiums

• Obtaining a long-term loan

• Claiming the loss as a tax deduction

"A person or organization that acts on behalf of another person or persons, putting their clients' interests ahead of their own, with a duty to preserve good faith and trust."

• Guarantor

• FAANG

• Fiduciary

• CFA

What question should finance professionals ask to provide the appropriate types and levels of service to their clients?

• How can I maximize my returns?

• Should I follow up with the clients?

• What are the client's expectations?

• Are my goals realistic and attainable?

What economic activity is necessary for consumption to occur?

• Production

• Opportunity

• Management

• Financing

Gary believes that the upper class should pay a higher income tax rate than the middle and lower classes. What tax structure does Gary favor?

• Progressive

• Regressive

• Exclusive

• Proportional

Which of the following are examples of deposit-taking financial institutions

• Commercial banks, corporations, and mutual savings banks

• Credit unions, savings and loan associations, and commercial banks

• Savings and loan associations, mutual savings banks, and insurance firms

• Commercial banks, credit unions, and brokerages

Which of the following is most likely to have a negative effect on financial markets

• Interest rates fluctuate daily

• Business expansion slows quickly

• Unemployment rates stabilize steadily

• Consumer spending increases consistently

In the past 20 years, Country X has reformed its trade policies and currency exchange rate system. As a result, foreign investment is increasing, and the country's business activity and gross domestic product is rapidly growing. This is an example of a(n)

• Integrated financial marke

• Recession-proof economy

• Emerging market economy

• Industrial-based market