Finance Quiz Intermediate

What does an "Agent" in finance typically do?

• Owns shares in transactions

• Acts on behalf of the client without owning shares

• Issues new shares

• Buys and sells shares for their own account

What is the main purpose of "Amortization"?

• To convert shares into cash

• To charge a portion of an expenditure over a fixed period

• To calculate interest on a loan

• To determine the value of stocks

What is an "Annuity Due"?

• Payments occur at the end of each period

• Payments occur at the beginning of each period

• A single lump-sum payment

• Payments occur annually

What does "Appreciation" refer to in financial terms?

• Decrease in value

• Increase in value

• Increase in debt

• Decrease in revenue

What is "Arbitrage"?

• Selling an asset and buying another at the same price

• Simultaneous purchase and sale of identical commodities to take advantage of price differences

• Buying assets at a discount

• Selling all assets to avoid losses

Which of the following is a "Current Asset"?

• Machinery

• Inventory

• Land

• Patents

What is the purpose of an "Audit"?

• To issue new stocks

• To review and verify the accuracy of financial records

• To calculate depreciation

• To determine the market value of securities

What does "Bad Debts" represent?

• Profits earned from investments

• Amounts owed that are unlikely to be collected

• Cash inflow from new customers

• Revenue from sales

What does a "Balance Sheet" list?

• Only liabilities and capital

• Only assets

• Assets, liabilities, and capital

• Only income and expenses

What is a "Bond"?

• A short-term debt instrument

• A type of long-term promissory note

• An equity security

• A commodity