Intro to Business Concepts

What is the role of the Federal Reserve System?

• To print and regulate the distribution of currency

• To provide military defense

• To conduct monetary policy and regulate banks

• To oversee education and curriculum in schools

What are the various sources of financing for business ventures?

• Loans

• Crowdfunding

• Investors

• Angel investors

• Grants

How can you develop, evaluate, and modify a spending/savings plan?

• By regularly reviewing financial goals and adjusting expenses

• Ignoring changes in financial situation

• Not setting any financial goals

• Only evaluating the plan once a year

What is the purpose of a budget?

• To plan for future savings and expenses

• To document historical financial transactions

• To calculate taxes

• To track physical inventory

How do you manage a checking account effectively?

• By regularly monitoring the account balance

• By writing checks and transferring funds electronically

• By exceeding the overdraft limit frequently

• By ignoring any fees or charges applied to the account

• By making deposits

Which of the following best describes the differences between banks, credit unions, and other financial institutions?

• Banks are for-profit institutions, credit unions are not-for-profit and serve members, and other financial institutions vary in services and regulations.

• Banks and credit unions are essentially the same, with no significant differences.

• Only banks offer loans and credit cards, while credit unions and other financial institutions do not.

• Credit unions are government-owned, while banks and other financial institutions are privately owned.

Fixed expenses are costs that do not change from month to month, whereas variable expenses are costs that can vary depending on use and other factors.

• True

• False

Which of the following is a step in preparing and interpreting financial statements?

• Analyzing business transactions

• Preparing trial balance

• Generating income statement

• All of the above

How can you evaluate savings and investment options?

• By comparing their interest rates and risks

• Checking the bank's reputation only

• Consulting a financial advisor without doing personal research

• Investing all your savings into one option for higher returns

Where can you find securities information?

• Stock exchange websites

• Financial news websites

• Company's official financial reports

• All of the above