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Worksheets

Mid-Term

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

Which are examples of deposit-taking financial institutions?

a)

commercial banks, credit unions, and brokerages 

b)

commercial banks, corporations, and mutual savings banks

c)

credit unions, savings and loan associations, and commercial banks

d)

savings and loan associations, mutual savings banks, and insurance

firms

2.

Which is an example of a non-deposit financial institution?

a)

credit union

b)

mortgage bank

c)

mutual savings bank

d)

commercial bank

3.

Which is a measure of how well a business generates cash flow?

a)

accounts receivable

b)

accounts payable

c)

capital structure

d)

return on capital

4.

The goals of the finance function are to ensure profitability and to:

a)

reduce risks.

b)

advertise products.

c)

give out information.

d)

manufacture raw materials.

5.

Determining which projects a business should invest in is known as:

a)

return on capital.

b)

capital budgeting.

c)

capital structuring.

d)

the cash conversion cycle.

6.

Julie, a newly promoted manager, lacks the time to properly prepare

employee work schedules and assigns this duty to the assistant manager.

Which time management technique is Julie using?

a)

delegating activities

b)

standardizing tasks

c)

setting objectives

d)

procrastinating

7.

An institution that combines the elements of a bureaucracy with those of

a private company is called a:

a)

private company

b)

semi-government

c)

franchise business

d)

government institution

8.

When Alana prepares a report so that all financial data is clearly

disclosed, she is ensuring that the information is:

a)

flexible

b)

relevant

c)

timely

d)

transparent

9.

An amount of money that a business owes to someone else is referred to

as:

a)

equity

b)

an asset

c)

accounts payable

d)

balance

10.

Beau is stressed out because he agreed to take on three new clients

when his calendar is already full. Which time-management principle does

he need to learn?

a)

get enough sleep

b)

focus on goals, not on tasks

c)

divide large projects into smaller parts

d)

be realistic in accepting responsibility for work

11.

When return on capital is positive, the company is most likely:

a)

losing value

b)

low on cash

c)

growing in value

d)

paying out dividends

12.

The concept of time management refers to the process of how to:

a)

use a calendar

b)

keep a time log

c)

organize belongings

d)

efficiently use a 24-hour day

13.

One of the roles of ethics in finance is to encourage business employees

to:

a)

prepare operating budgets

b)

increase company profits

c)

make the right decisions

d)

sell to customers

14.

When an employee always works a full day, but never seems to complete

any tasks, that employee needs to focus on:

a)

time management

b)

worrying more about the job

c)

how to delegate all work responsibilities

d)

observing the methods of fellow workers for getting work done

15.

Natalia is upset because she was supposed to work on a certain account

today, but her boss switched her to another account at the last minute.

Which time-management principle would benefit Natalia?

a)

be flexible

b)

get enough sleep

c)

plan meetings wisely

d)

know when and how you work best

16.

When scheduling daily activities, one should always keep in mind that

plans may need to change, creating the need for:

a)

activities

b)

appointments

c)

assignments

d)

flexibility

17.

The finance function ensures that the company's financial goals are:

a)

easy to accomplish

b)

related to product development

c)

in line with organizational priorities

d)

acceptable to the marketing department

18.

Which activities should be excluded from a daily to-do list?

a)

new activities that must be completed the next day

b)

required activities from the master calendar

c)

activities previously planned for the day

d)

activities that must be done next month

19.

What do many businesses develop to encourage ethical behavior in

finance?

a)

penalties

b)

punishments

c)

sanctions

d)

standards

20.

The primary purpose of insurance companies is to provide products that

help clients:

a)

minimize their risk

b)

reduce their assets

c)

increase their profitability

d)

strengthen their investments

21.

Which is the most likely reason for faster-than-average employment

growth of financial analysts and personal financial advisors?

a)

The U.S. population is worse off financially than before.

b)

Globalization of the securities markets makes investing more

complicated.

c)

The U.S. population likes to use the internet to handle their financial

issues.

d)

Financial analysts and personal financial advisors do not need a

college degree.

22.

Thad is investing in a money market, which buys and sells products such

as:

a)

technology

b)

treasury bills

c)

shares of stock

d)

agricultural goods

23.

Finance is the business function that involves managing:

a)

information

b)

marketing

c)

money

d)

production

24.

To keep communication flowing with other departments, the finance

function depends on:

a)

marketing

b)

production

c)

accounts receivable

d)

information systems

25.

A manager is most likely to use financial information when:

a)

establishing lines of authority within an organization.

b)

researching the demographics of a new target market.

c)

determining resources available to fund a new project.

d)

calculating the number of on-the-job injuries in the past year.

26.

Which is a disadvantage of investing in a savings account?

a)

The account's potential for loss is high.

b)

The rate of return fails to keep up with inflation.

c)

One must pay a penalty for withdrawing money early.

d)

A minimum balance is required to keep the account active.

27.

A marketplace where trading of securities such as equities, bonds,

currencies, and derivatives occurs is referred to as a:

a)

call market.

b)

bear market.

c)

financial market.

d)

foreign exchange market.

28.

A type of market in which each transaction takes place at predetermined

time intervals is referred to as a:

a)

call market.

b)

bond market.

c)

financial market.

d)

continuous market.

29.

The term that refers to how easily an asset can be converted to cash is

known as:

a)

commodity.

b)

currency.

c)

Eurobond.

d)

liquidity.

30.

Which is an advantage of investing in bonds?

a)

They are very low risk.

b)

They are insured by the FDIC.

c)

They are insured by the FDIC.

d)

They permit people to access their money at any time.

31.

In which financial market do people make investments in cocoa beans

and corn?

a)

money

b)

insurance

c)

soft commodities

d)

selective property

32.

Which is an example of a lending investment?

a)

bonds

b)

stocks

c)

antiques

d)

real estate

33.

Patrick wants to keep a certain amount of his money in a safe place in

which he can earn interest on his savings, and also be able to withdraw

his funds without experiencing sizable financial penalties. In what type of

financial institution should Patrick consider placing his money?

a)

a retail bank

b)

the stock market

c)

a retirement fund

d)

a holding company

34.

Individuals are most likely to require the services of a mortgage company

when they want to:

a)

purchase real estate.

b)

earn interest on savings.

c)

acquire liability insurance.

d)

invest in the stock market.

35.

Brian recently got his first part-time job as a food bagger at a local

grocery store. He needs a safe place to store his income that allows him

to withdraw money easily and frequently. Brian should consider opening

which type of account?

a)

savings

b)

checking

c)

health savings

d)

individual retirement

36.

Investors take a risk for the potential of receiving a:

a)

bonus.

b)

prize.

c)

promotion.

d)

return.

37.

Which is an example of a real estate investment?

a)

a corporate bond

b)

a certificate of deposit

c)

partial ownership of a corporation

d)

land to be developed in the future

38.

Which are often considered one of the safest investments?

a)

commodities

b)

penny stocks

c)

precious metals

d)

government bonds

39.

A form of money held or traded outside the country in whose currency its

value is stated is known as:

a)

U.S. currency.

b)

Eurocurrency.

c)

export currency.

d)

import currency.

40.

Successful bank managers and supervisors typically began their

employment as:

a)

apprentices.

b)

programmers.

c)

tellers.

d)

volunteers.

41.

Which type of protection ensures that a check, ATM, wire transfer, or

debit card transaction will clear if the account balance falls below zero?

a)

asset

b)

liability

c)

overdraft

d)

system

42.

A level of performance that describes using the least amount of input to

achieve the highest amount of output is known as:

a)

commodity.

b)

efficiency.

c)

liquidity.

d)

market.

43.

A disadvantage of owning stocks is the:

a)

high degree of risk.

b)

low potential for return.

c)

penalty for early withdrawal.

d)

potential for loss of time and effort.

44.

A type of market that allows traders to trade any time the market is

open is known as a:

a)

call market.

b)

bond market.

c)

financial market.

d)

continuous market.

45.

Which type of investment involves the ownership of items that are worth

far more than originally sold for because of rarity and/or popularity?

a)

stocks

b)

collectibles

c)

real estate

d)

stock mutual funds

46.

Chris wants to open a small business, and he has a very good business

plan that is likely to succeed. Where would Chris be most likely to go to

apply for a loan?

a)

local bank

b)

national bank

c)

insurance provider

d)

mortgage company

47.

Marcus wants to invest a portion of his money in long-term securities to

finance his son's college education and his own retirement. To help him

make the best investment decisions, Marcus should obtain the services

of a:

a)

loan officer.

b)

licensed tax accountant.

c)

certified financial planner.

d)

credit-union representative.

48.

Proofing, encoding, capturing, and sorting are all steps in which banking

process?

a)

check payment

b)

consumer lending

c)

cash management

d)

commercial lending

49.

What type of investment involves several people pooling their money to

purchase stocks and bonds?

a)

secure

b)

elective

c)

mutual funds

d)

money market accounts

50.

Which statement most accurately describes the relationship between risk

and return?

a)

For the potential of a low return, an investor usually accepts no risk.

b)

For the potential of a high return, an investor usually accepts a low

risk.

c)

For the potential of a low return, an investor usually accepts a high

risk.

d)

For the potential of a high return, an investor usually accepts a high

risk.