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20 questions
It is a financial intermediary handling individual savings. It receives premium payments placed in loans or investments to accumulate funds to cover future benefits.
life insurance company
commercial bank
savings bank
credit union
Which of the following is not a financial institution?
pension fund
A newspaper publisher
A commercial bank
An insurance company
It is a set up so that employees of corporations or governments can receive income after retirement.
life insurance company
Pension fund
Savings bank
credit union
It is a type of financial intermediary that pools savings of individuals and makes them available to business and government users. Funds obtained through the sale of shares.
Mutual Funds
Commercial banks
Savings and loans
Credit Union
Most businesses raise money by selling their securities in a.
direct placement
stock exchange
public offering
private placement
Which of the following is not a service provided by financial institutions.
Buying the businesses of customers
Investing customers’ savings in stocks and bonds
Paying savers’ interest on deposit
Lending money to customers
By definition, the money market involves the buying and selling of.
funds that mature in more than one year.
flows of funds
stocks and bonds.
short-term funds.
It creates financial relationship between suppliers and users of short-term funds.
financial market
money market
stock market
capital market
Firms that require funds from external sources can obtain them from
financial markets.
private placement.
financial institutions.
All the above.
The science and art of managing money.
Financial Management
Finance
Management
Personal Finance
High cash flow is generally associated with a higher share price whereas higher risk tends to result in a lower share price.
True
False
The wealth of corporate owners has measured by the share price of the stock
True
False
When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that expected to maximize shareholder value.
True
False
Stockholders expect to earn higher rates of return on investments of lower risk and lower rates of return on investments of higher risk.
True
False
Financial markets are intermediaries that channel the savings of individuals, businesses, and government into loans or investments.
True
False
Commercial banks obtain most of their funds from borrowing in the capital markets.
True
False
The money market involves trading of securities with maturities of one year or less while the capital market involves the buying and selling of securities with maturities for more than one year.
True
False
Primary and secondary markets are markets for short-term and long-term securities, respectively.
True
False
A mutual fund is a type of financial intermediary that obtains funds through the sale of shares and uses the proceeds to acquire bonds and stocks issued by various business and governmental units.
True
False
Credit unions are the largest type of financial intermediary handling individual savings.
True
False
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