MID-TERM TEST 2 (FINANCE AND BANKING)

Complete the following sentence with the correct form of the word in parentheses:

Financial decisions relate to the raising of finance from (VARY) (a)   resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby.

Complete the following sentence with the correct form of the word in parentheses:

We will give you the (a)   (POSSIBLE) to apply for a credit card used to pay for goods on credit or to borrow in cash provided that you are a good risk customer.

Complete the following sentences with the correct form of the word in parentheses:

A finance manager has to make estimation with regards to capital (REQUIRE) (a)   of the company. This will depend upon expected costs and profits and future programs and policies of a concern.

Complete the following sentence with the correct form of the word in parentheses:

It is an ideal practice for controlling the financial activities of an organization such as procurement of funds, utilization of funds, accounting, payments, risk (ASSESS) (a)   and every other thing related to money.

Complete the following sentence with the correct form of the word in parentheses:

In general, "commercial bank" is a broad term for for-profit, FDIC-insured organizations that accept customer deposits and offer lending (PRODUCE) (a)   - this is what most people think of as a bank.

__________ are financial investments that offer ownership in a company.

• Stocks

• Savings accounts

• Bonds

• Loans

Someone who acquires goods and services for his or her own personal use.

• producer

• consumer

• market economy

• seller

A company's __________ is (are) potentially the most effective instrument of good corporate governance.

• common stock shareholders

• board of directors

• top executive officers

• Certified Public Accountant

When it becomes obvious that it has a bad debt, the bank has to write it _________.

• off

• of

• out

• across

These organizations are similar to banks, but they are not-for-profit ones.

• online banks

• central banks

• credit unions

• commercial banks