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WorksheetsBusiness Finance Ch. 1 Review
Total questions: 22
Worksheet time: 11mins
Money does not includes checking accounts.
True
False
Financial activities of governments involve borrowing funds to build things businesses need to operate.
True
False
Decreased borrowing by consumers and businesses usually results in lower interest rates.
True
False
A trade surplus involves a country importing more than it exports.
True
False
The fifth step in the personal financial planning process is to evaluate alternatives.
True
False
The opportunity cost of a decision is what a person gains when making a choice.
True
False
A life insurance company is not a deposit financial institution.
True
False
Check-cashing outlets are less expensive than services at most other financial institutions.
True
False
Capital expenditures refer to payments for current operating expenses.
True
False
Property taxes are a NOT major source of revenue for local governments.
True
False
The participant in a financial system that collects taxes is
Government
consumers
nonprofit organizations
If freezing weather damages orange crops in Florida
the money supply will decline
interest rates will decline
higher consumer prices can occur
lower inflation would result
A location where long-term debt and equity securities are sold is called
a risk market
a capital market
a development bank
a money market
An example of a deposit institution would be
a check-cashing outlet
an insurance company
a credit union
an investment company
A common use of funds for businesses is
revenue
capital expenditures
money from investors
borrowing
Business activities that cross state lines are referred to as
municipal business
intrastate commerce
regional economic development
interstate Commerce
Future cash flow is described as:
The cost of money.
when making an investment, both individuals and companies expect to receive money in the future.
Dangers associated with investing
as more people desire a certain investment, the value will likely increase.
The ease and speed with which an investment can be converted into cash.
Supply and demand is described as:
The cost of money.
when making an investment, both individuals and companies expect to receive money in the future.
Dangers associated with investing
as more people desire a certain investment, the value will likely increase.
The ease and speed with which an investment can be converted into cash.
Risk is described as:
The cost of money.
when making an investment, both individuals and companies expect to receive money in the future.
Dangers associated with investing
as more people desire a certain investment, the value will likely increase.
The ease and speed with which an investment can be converted into cash.
Liquidity is described as:
The cost of money.
when making an investment, both individuals and companies expect to receive money in the future.
Dangers associated with investing
as more people desire a certain investment, the value will likely increase.
The ease and speed with which an investment can be converted into cash.
Interest Rates are described as:
The cost of money.
when making an investment, both individuals and companies expect to receive money in the future.
Dangers associated with investing
as more people desire a certain investment, the value will likely increase.
The ease and speed with which an investment can be converted into cash.
What are the steps (in order) of the personal financial planning process?
- Set Financial Goals
- Evaluate alternatives
- Determine current situation
- Create action plan
- Review your progress
- Determine current situation
- Set Financial Goals
- Evaluate alternatives
- Create action plan
- Review your progress
- Evaluate alternatives
- Create action plan
- Set Financial Goals
- Determine current situation
- Review your progress
