WorksheetsMid-Term
Total questions: 50
Worksheet time: 25mins
Which are examples of deposit-taking financial institutions?
commercial banks, credit unions, and brokerages
commercial banks, corporations, and mutual savings banks
credit unions, savings and loan associations, and commercial banks
savings and loan associations, mutual savings banks, and insurance
firms
Which is an example of a non-deposit financial institution?
credit union
mortgage bank
mutual savings bank
commercial bank
Which is a measure of how well a business generates cash flow?
accounts receivable
accounts payable
capital structure
return on capital
The goals of the finance function are to ensure profitability and to:
reduce risks.
advertise products.
give out information.
manufacture raw materials.
Determining which projects a business should invest in is known as:
return on capital.
capital budgeting.
capital structuring.
the cash conversion cycle.
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?
delegating activities
standardizing tasks
setting objectives
procrastinating
An institution that combines the elements of a bureaucracy with those of
a private company is called a:
private company
semi-government
franchise business
government institution
When Alana prepares a report so that all financial data is clearly
disclosed, she is ensuring that the information is:
flexible
relevant
timely
transparent
An amount of money that a business owes to someone else is referred to
as:
equity
an asset
accounts payable
balance
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?
get enough sleep
focus on goals, not on tasks
divide large projects into smaller parts
be realistic in accepting responsibility for work
When return on capital is positive, the company is most likely:
losing value
low on cash
growing in value
paying out dividends
The concept of time management refers to the process of how to:
use a calendar
keep a time log
organize belongings
efficiently use a 24-hour day
One of the roles of ethics in finance is to encourage business employees
to:
prepare operating budgets
increase company profits
make the right decisions
sell to customers
When an employee always works a full day, but never seems to complete
any tasks, that employee needs to focus on:
time management
worrying more about the job
how to delegate all work responsibilities
observing the methods of fellow workers for getting work done
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?
be flexible
get enough sleep
plan meetings wisely
know when and how you work best
When scheduling daily activities, one should always keep in mind that
plans may need to change, creating the need for:
activities
appointments
assignments
flexibility
The finance function ensures that the company's financial goals are:
easy to accomplish
related to product development
in line with organizational priorities
acceptable to the marketing department
Which activities should be excluded from a daily to-do list?
new activities that must be completed the next day
required activities from the master calendar
activities previously planned for the day
activities that must be done next month
What do many businesses develop to encourage ethical behavior in
finance?
penalties
punishments
sanctions
standards
The primary purpose of insurance companies is to provide products that
help clients:
minimize their risk
reduce their assets
increase their profitability
strengthen their investments
Which is the most likely reason for faster-than-average employment
growth of financial analysts and personal financial advisors?
The U.S. population is worse off financially than before.
Globalization of the securities markets makes investing more
complicated.
The U.S. population likes to use the internet to handle their financial
issues.
Financial analysts and personal financial advisors do not need a
college degree.
Thad is investing in a money market, which buys and sells products such
as:
technology
treasury bills
shares of stock
agricultural goods
Finance is the business function that involves managing:
information
marketing
money
production
To keep communication flowing with other departments, the finance
function depends on:
marketing
production
accounts receivable
information systems
A manager is most likely to use financial information when:
establishing lines of authority within an organization.
researching the demographics of a new target market.
determining resources available to fund a new project.
calculating the number of on-the-job injuries in the past year.
Which is a disadvantage of investing in a savings account?
The account's potential for loss is high.
The rate of return fails to keep up with inflation.
One must pay a penalty for withdrawing money early.
A minimum balance is required to keep the account active.
A marketplace where trading of securities such as equities, bonds,
currencies, and derivatives occurs is referred to as a:
call market.
bear market.
financial market.
foreign exchange market.
A type of market in which each transaction takes place at predetermined
time intervals is referred to as a:
call market.
bond market.
financial market.
continuous market.
The term that refers to how easily an asset can be converted to cash is
known as:
commodity.
currency.
Eurobond.
liquidity.
Which is an advantage of investing in bonds?
They are very low risk.
They are insured by the FDIC.
They are insured by the FDIC.
They permit people to access their money at any time.
In which financial market do people make investments in cocoa beans
and corn?
money
insurance
soft commodities
selective property
Which is an example of a lending investment?
bonds
stocks
antiques
real estate
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 retail bank
the stock market
a retirement fund
a holding company
Individuals are most likely to require the services of a mortgage company
when they want to:
purchase real estate.
earn interest on savings.
acquire liability insurance.
invest in the stock market.
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?
savings
checking
health savings
individual retirement
Investors take a risk for the potential of receiving a:
bonus.
prize.
promotion.
return.
Which is an example of a real estate investment?
a corporate bond
a certificate of deposit
partial ownership of a corporation
land to be developed in the future
Which are often considered one of the safest investments?
commodities
penny stocks
precious metals
government bonds
A form of money held or traded outside the country in whose currency its
value is stated is known as:
U.S. currency.
Eurocurrency.
export currency.
import currency.
Successful bank managers and supervisors typically began their
employment as:
apprentices.
programmers.
tellers.
volunteers.
Which type of protection ensures that a check, ATM, wire transfer, or
debit card transaction will clear if the account balance falls below zero?
asset
liability
overdraft
system
A level of performance that describes using the least amount of input to
achieve the highest amount of output is known as:
commodity.
efficiency.
liquidity.
market.
A disadvantage of owning stocks is the:
high degree of risk.
low potential for return.
penalty for early withdrawal.
potential for loss of time and effort.
A type of market that allows traders to trade any time the market is
open is known as a:
call market.
bond market.
financial market.
continuous market.
Which type of investment involves the ownership of items that are worth
far more than originally sold for because of rarity and/or popularity?
stocks
collectibles
real estate
stock mutual funds
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?
local bank
national bank
insurance provider
mortgage company
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:
loan officer.
licensed tax accountant.
certified financial planner.
credit-union representative.
Proofing, encoding, capturing, and sorting are all steps in which banking
process?
check payment
consumer lending
cash management
commercial lending
What type of investment involves several people pooling their money to
purchase stocks and bonds?
secure
elective
mutual funds
money market accounts
Which statement most accurately describes the relationship between risk
and return?
For the potential of a low return, an investor usually accepts no risk.
For the potential of a high return, an investor usually accepts a low
risk.
For the potential of a low return, an investor usually accepts a high
risk.
For the potential of a high return, an investor usually accepts a high
risk.
