strayer fin100 all weeks quizes latest 2015

| June 2, 2016

Question

quiz 1

Question 1

2 out of 2 points

Correct

_______________ is the study of how individuals prepare for financial emergencies, protect against premature death and the loss of property, and accumulate wealth over time.

Question 2

2 out of 2 points

Correct

The issuing of new securities, mortgages, and other claims to wealth takes place in the:

Question 3

2 out of 2 points

Correct

________________ involves making decisions relating to issuing and investing in stocks and bonds.

Question 4

2 out of 2 points

Correct

________________ involves the sale or marketing of securities, the analysis of securities, and the management of risk through portfolio diversification.

Question 5

2 out of 2 points

Correct

The study of how growth-driven, performance-focused, early stage firms raise financial capital and manage operations and assets is called:

Question 6

2 out of 2 points

Correct

______________ behavior refers to how an individual or organization treats others legally, fairly, and honestly.

Question 7

2 out of 2 points

Correct

____________________ in business involves making decisions relating to the efficient use of financial resources in the production and sale of goods and services.

Question 8

2 out of 2 points

Correct

The goal of the financial manager in a profit-seeking organization is to maximize:

Question 9

2 out of 2 points

Correct

Finance is:

Question 10

2 out of 2 points

Correct

An area of finance that involves the sale or marketing of securities, the analysis of securities, and the management of investment risk through portfolio diversification is referred to as:

Question 11

0 out of 2 points

Incorrect

The savings-investment process

Question 12

2 out of 2 points

Correct

Deposit money is backed by:

Question 13

2 out of 2 points

Correct

_____________ is a short-term debt security sold by a business firm or financial institution to another business or institution where the seller agrees to buy back the security at a specified price and date.

Question 14

2 out of 2 points

Correct

A ____________ is a short-term debt instrument issued by commercial banks in denominations of $100,000 or more with typical maturities ranging from one month to one year that have an active secondary market that allows short-term investors to easily match their cash or liquidity needs when they arise.

Question 15

2 out of 2 points

Correct

The supply of a currency in international markets depends largely on the:

Question 16

2 out of 2 points

Correct

Which of the following are not depository institutions?

Question 17

2 out of 2 points

Correct

Money decreed to be “legal tender” for the payment of debts is money backed by:

Question 18

2 out of 2 points

Correct

The function of money that expresses prices and contracts for deferred payments in terms of the monetary unit is referred to as:

Question 19

2 out of 2 points

Correct

The three functions of money are:

Question 20

2 out of 2 points

Correct

Inflation is:

quiz 5

· Question 1

2 out of 2 points

A bond that does not permit future bond issues to be secured by any of the assets pledged as security to it is called a (n):

· Question 2

2 out of 2 points

The terms or covenants of a bond contract are set out in which of the following documents?

· Question 3

2 out of 2 points

Which of the following bond types would describe unsecured obligations that depend on the general credit strength of the corporation?

· Question 4

2 out of 2 points

Which of the following bonds has the greatest interest rate risk?

· Question 5

2 out of 2 points

A bond that allows investors to force the issuer to redeem the bond prior to maturity is called a:

· Question 6

2 out of 2 points

Which of the following is not a rating category used when rating bonds?

· Question 7

2 out of 2 points

Which of the following is considered to be the most risky?

· Question 8

2 out of 2 points

When the market interest rate rises for a particular quality of bond, the price of the bond falls, which gives investors a new:

· Question 9

2 out of 2 points

To accurately compare the rate of return on one investment with another, they should be:

· Question 10

2 out of 2 points

A current yield on a corporate bond is calculated as:

quiz 7

Question 1
0 out of 2 points

Incorrect

The goal of a company’s cash management policy is to

Question 2

2 out of 2 points

Correct

The objective of managing current assets and liabilities is to

Question 3

2 out of 2 points

Correct

A negative cash conversion cycle indicates that the

Question 4

2 out of 2 points

Correct

Deposits placed in foreign banks that remain denominated in U.S. dollars are called:

Question 5

2 out of 2 points

Correct

A mercantile credit bureau serves primarily as a (n):

Question 6

2 out of 2 points

Correct

The current ratio concept is particularly useful in:

Question 7

2 out of 2 points

Correct

The portion of current assets financed through long-term financing is referred to as the:

Question 8

2 out of 2 points

Correct

Calculation of a firm’s average collection period is the same as calculating the:

Question 9

0 out of 2 points

Incorrect

One type of investment that would not be suitable for marketable securities would be:

Question 10

2 out of 2 points

Correct

If a firm purchases materials on credit and thus has accounts payable, its cash conversion cycle will be:

Question 11

2 out of 2 points

Correct

Which of the following short-term sources of funds is available only to the financially strongest concerns?

Question 12

0 out of 2 points

Incorrect

Commercial paper dealers:

Question 13

2 out of 2 points

Correct

The purchaser may deduct 2% from the .homeworkminutes.com/question/view/76354/strayer-fin100-quiz-7-done-on-2015-all-correct-answer#”>purchase price if payment is made within 10 days; but if not paid within 10 days, the net amount of the purchase is due within 30 days. The sale is made on what terms?

Question 14

2 out of 2 points

Correct

The most important form of short-term business financing is:

Question 15

2 out of 2 points

Correct

The bank line of credit is:

Question 16

2 out of 2 points

Correct

The prime rate offered by commercial banks is their _____________ rate to their ______________ quality business customers.

Question 17

0 out of 2 points

Incorrect

Compensating balances at a commercial bank are:

Question 18

0 out of 2 points

Incorrect

A revolving credit agreement is a:

Question 19

0 out of 2 points

Incorrect

What is the most important overall source of short-term business financing both in the U.S. and worldwide?

Question 20

0 out of 2 points

A __________________ is a claim against a customer’s inventory when the individual items are indistinguishable.

Answer

quiz 6

Question 1

0 out of 2 points

Incorrect

On the income statement, gross profit is defined as:

Question 2

2 out of 2 points

Correct

For a given accounting period, which of the following is likely to represent primarily variable costs?

Question 3

2 out of 2 points

Correct

Under which one of the following business organizations do the owners have unlimited liability for all debts of the firm?

Question 4

2 out of 2 points

Correct

The depreciation method currently used for tax purposes today is called the:

Question 5

2 out of 2 points

Correct

The accrued liabilities of a firm are:

Question 6

2 out of 2 points

Correct

The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:

Question 7

2 out of 2 points

Correct

The financial statement that provides a snapshot view of the financial condition of a business at a point in time is the:

Question 8

0 out of 2 points

Incorrect

Of the following forms of business organization, which have the advantage of limited liability but no stockholders?

Question 9

0 out of 2 points

Incorrect

On the balance sheet, total assets minus net fixed assets equals:

Question 10

2 out of 2 points

Correct

Generally accepted accounting principles are formulated by the:

Question 11

2 out of 2 points

Correct

________ evidence of the existence of a problem or outstanding management performance is provided by ratio analysis.

Question 12

0 out of 2 points

Incorrect

If a firm’s sale price per unit decreases, the firm’s operating breakeven point will

Question 13

2 out of 2 points

Correct

Which one of the following ratios indicates the average number of days that sales are outstanding?

Question 14

0 out of 2 points

Incorrect

In cost-volume-profit analysis, a firm “breaks even” when its total revenues:

Question 15

2 out of 2 points

Correct

_____________ costs are a function of time (not sales) and are generally contractual.

Question 16

0 out of 2 points

Incorrect

Ratios used to compare different firms at the same point in time belong to a category of analysis called:

Question 17

0 out of 2 points

Incorrect

Which group of ratios might be most interesting to potential creditors of a firm?

Question 18

2 out of 2 points

Correct

The ________ method of developing a pro forma income statement forecasts sales and values for the cost of goods sold, operating expenses, and interest expense that are expressed as a ratio of projected sales.

percent of sales

Question 19

2 out of 2 points

Correct

Which of the following is not a variable cost?

Question 20

2 out of 2 points

Correct

The extent to which assets are financed by borrowed funds and other liabilities is indicated by:

quiz 8

Question 1

2 out of 2 points

Correct

Which one of the following capital-budgeting evaluation techniques is based on finding a discount rate which causes the net present value to be zero?

Question 2

0 out of 2 points

Incorrect

When considering the time value of money, which of the following four methods of project evaluation would appear to be the least satisfactory?

Question 3

0 out of 2 points

Incorrect

The IRR

Question 4

2 out of 2 points

Correct

An examination of a firm’s opportunities, strengths, threats and weaknesses is often referred to by the following acronym:

Question 5

2 out of 2 points

Correct

The internal rate of return concept is best explained by which of the following?

Question 6

2 out of 2 points

Correct

The corporate planning tool that develops project plans that fit well with the firm’s plans is often referred to by the following acronym:

Question 7

0 out of 2 points

Incorrect

The stage in the capital budgeting process in which implemented projects are periodically reviewed is called the _____________ stage.

Question 8

0 out of 2 points

Incorrect

Which one of the following best explains the impact on a firm that accepts a project with a negative NPV?

Question 9

2 out of 2 points

Correct

The ________ is the discount rate that equates the present value of the cash inflows with the initial investment.

Question 10

0 out of 2 points

Incorrect

The payback period concept is best explained by which of the following?

Question 11

0 out of 2 points

Incorrect

What should be the relation between the target capital structure for a firm and the firm’s optimum capital structure?

Question 12

0 out of 2 points

Incorrect

The initial impact of increasing the use of debt is to:

Question 13

0 out of 2 points

Incorrect

Other factors being constant, higher fixed operating costs mean:

Question 14

2 out of 2 points

Correct

A firm’s business risk is measured by the variability in which one of the following over time:

Question 15

0 out of 2 points

Incorrect

Which of the following is a correct way to calculate degree of combined leverage?

Question 16

2 out of 2 points

Correct

Corporate debt as a percentage of GDP grew from around ______ in 1970 to nearly ______ in 2007.

Question 17

2 out of 2 points

Correct

In calculating the cost of new common stock using the constant dividend growth model, it is important that the __________ are subtracted from the price of the stock.

Question 18

0 out of 2 points

Incorrect

Of the components shown below, which is least likely to be of value in calculating the cost of preferred stock?

Question 19

0 out of 2 points

Incorrect

The estimate of how quickly a firm may grow by maintaining a constant mix of debt and equity is called:

Question 20

0 out of 2 points

Incorrect

The hypotheses that states that firms try to time the market by issuing stocks when stock prices are high and repurchasing shares when prices are low is called:

quiz 4 and 5

• Question 1

2 out of 2 points

A famous athlete is awarded a $9 million contract that stipulates equal payments to be made monthly over a period of five years. To determine what such a contract is worth today, you would need to use:

• Question 2

2 out of 2 points

The basic future and present value equations contain four variables. Which one of the following is not included?

• Question 3

2 out of 2 points

A loan that is repaid in equal payments over a specified time period is referred to as a (n):

• Question 4

2 out of 2 points

The present value of a $20,000 perpetuity at a 7 percent discount rate is

• Question 5

2 out of 2 points

When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called

• Question 6

0 out of 2 points

If the interest rate is zero, the future value interest factor equals ________.

• Question 7

2 out of 2 points

If the stated or nominal interest rate is 10 percent and the inflation rate is 5 percent, the differential compounding rate would be ________ percent

• Question 8

2 out of 2 points

For positive interest rates, the future value interest factor is

• Question 9

2 out of 2 points

When compounding more than once a year, the true opportunity costs measure of the interest rate is indicated by the:

effective annual rate

• Question 10

2 out of 2 points

A series of equal payments or receipts that occur at the beginning of each of a number of time periods is referred to as:

• Question 1

2 out of 2 points

Which of the following is not a rating category used when rating bonds?

• Question 2

2 out of 2 points

Which of the following risks would not be faced by investors in domestic bonds?

exchange rate risk

• Question 3

2 out of 2 points

A bond that allows the same assets to be used as security in future issues is called a (n):

• Question 4

2 out of 2 points

Which of the following is considered to be the most risky?

• Question 5

2 out of 2 points

In actual practice, most corporate bonds pay interest:

• Question 6

2 out of 2 points

A document which is administered by a trustee, and includes in great detail the various provisions of the loan agreement is called the:

• Question 7

2 out of 2 points

An individual or organization that represents the bondholders to ensure the indenture’s provisions are respected by the bond issuer is called a (n):

• Question 8

2 out of 2 points

A (n) _____________ gives the bondholder a claim to specific assets (identified through serial numbers) such as railroad cars or airplanes.

• Question 9

2 out of 2 points

A bond that does not permit future bond issues to be secured by any of the assets pledged as security to it is called a (n):

• Question 10

2 out of 2 points

___________________ has the lowest claim on the assets and cash flow of the firm.

quiz 3

Question 1

2 out of 2 points

Correct

Greater potential savings would result from a (n):

shift to more middle-aged families

Question 2

2 out of 2 points

Correct

The most important savings surplus unit in the economy is:

the savings of individuals

Question 3

2 out of 2 points

Correct

Which of the following is an example of indirect financing?

Question 4

0 out of 2 points

Incorrect

Which of the following instruments generates the largest amount of funds annually in the credit markets?

Question 5

2 out of 2 points

Correct

A business loan to Joe’s Hardware Store by a bank represents which of the following?

Answer

Question 6

0 out of 2 points

Incorrect

A business deposit in a commercial bank represents:

Question 7

2 out of 2 points

Correct

Which one the following four basic economic units consistently represents a savings surplus unit?

Answer

Question 8

2 out of 2 points

Correct

A saver who chooses securities as a savings medium and desires maximum safety of principal buys:

Question 9

2 out of 2 points

Correct

Which of the following categories is not considered to be one of the four basic economic units in the U.S. financial system?

Question 10

0 out of 2 points

Incorrect

What type of investment occurs when claims to wealth in the form of real assets are created or acquired?

Question 11

2 out of 2 points

Correct

When referring to an “upward sloping” yield curve, interest rates:

Answer

Question 12

2 out of 2 points

Correct

______________ is the tendency of prices, aided by union-corporation contracts, to rise during economic expansions and resist declines during recessions.

Question 13

0 out of 2 points

Incorrect

When referring to a “downward sloping” yield curve:

as maturities shorten, interest rates rise

Question 14

2 out of 2 points

Correct

The basic sources of loanable funds are:

Question 15

2 out of 2 points

Correct

The yield curve or the term structure of interest rates is typically downward sloping when:

Question 16

2 out of 2 points

Correct

If the money supply and total demand increase faster than output, prices will:

Question 17

2 out of 2 points

Correct

The loanable funds theory used to explain the level of interest rates holds that interest rates are a function of the supply of:

Question 18

2 out of 2 points

Correct

______________ occurs during economic expansions when demand for goods and services is greater than supply.

Question 19

2 out of 2 points

Correct

The basic motives for holding money rather than investments are the:

Question 20

2 out of 2 points

Correct

A basic source of loanable funds is:

quiz 2

Question 1
A basic requirement for an effective financial system is a monetary system that performs which of the following financial functions?
Answer

formation and transferring of money

storing gold and silver to back up money

creating jobs

transferring real assets
2 points

Question 2
____________________ in business involves making decisions relating to the efficient use of financial resources in the production and sale of goods and services.
Answer

Financial management

Financial economics

Investment management

Asset allocation
2 points

Question 3
An area of finance that refers to the physical locations or electronic forums that facilitate the flow of funds among investors, businesses, and governments is called:
Answer

financial management

investments

financial institutions

financial markets
2 points

Question 4
The financial environment:
Answer

encompasses the financial markets and global interactions that contribute to an efficiently operating economy.

encompasses the financial institutions and financial markets that contribute to an efficiently operating economy.

encompasses the financial system, financial institutions, financial markets, business firms, individuals, and global interactions that contribute to an efficiently operating economy.

none of the above.
2 points

Question 5
The theory of ___________________ implies that information is quickly embedded in prices making it difficult for investors to “beat the market.”
Answer

stock investing

efficient markets

portfolio management

asset allocation
2 points

Question 6
________________ involves making decisions relating to issuing and investing in stocks and bonds.
Answer

Financial economics

Financial management

Investment management

Asset allocation
2 points

Question 7
The primary goal of the financial manager of a profit-seeking organization is to:
Answer

maximize market share

maximize the owners’ wealth

increase sales and profit

have healthy cash flow
2 points

Question 8
An area of finance that involves the study of organizations or intermediaries that help the financial system operate efficiently and transfer funds from savers and investors to individuals, businesses, and governments that seek to spend or invest the funds in physical assets (inventories, buildings, and equipment) is called:
Answer

financial management

investments

financial institutions

financial markets
2 points

Question 9
____________________ provide the record-keeping mechanism for showing ownership of the financial instruments used in the flow of financial funds between savers and borrowers and record revenues, expenses, and profitability of organizations that produce and exchange goods and services.
Answer

Financial Managers

Accountants

Operations Managers

Statisticians
2 points

Question 10
Rational investors would consider an investment in a risky business venture only if they feel the expected return is high enough to justify the
Answer

greater risk.

higher cost.

longer useful life.

more complex designs.
2 points

Question 11
The U.S. bimetallic standard was based on:
Answer

gold and platinum

silver and gold

gold and copper

silver and copper
2 points

Question 12
The only paper money of significance in the economy today is:
Answer

silver certificates

demand deposits

greenbacks

Federal Reserve notes
2 points

Question 13
_____________ is a promise of future payment issued by a firm and guaranteed by a bank that is used to finance international trade with typical maturities ranging from one to six months.
Answer

A negotiable certificate of deposit (NCD)

A repurchase agreement

Commercial paper

A banker’s acceptance
2 points

Question 14
When it is a means of paying for goods and services and discharging debts, money is referred to as a:
Answer

store of purchasing power

medium of exchange

standard of value

liquid asset
2 points

Question 15
Inflation is:
Answer

an increase in the purchasing power of money

a decrease in the quality of goods and services

an increase in the prices of goods and services not offset by increases in the quality of those goods and services

a measure of the money supply
2 points

Question 16
The supply of a currency in international markets depends largely on the:
Answer

Federal Reserve System

imports of the issuing country

amount of exports that currency will buy from the issuing country

confidence of market participants in the restraint and ability of the monetary authority issuing the currency
2 points

Question 17
Paper money fully backed by a precious metal and issued by the government is called:
Answer

fiat money

representative full-bodied money

full-bodied money

credit money
2 points

Question 18
Deposit money is backed by:
Answer

gold

silver

creditworthiness of the issuer

creditworthiness of the depository institution
2 points

Question 19
Which of the following describes the basic function of money?
Answer

store of purchasing power

standard of value

medium of exchange

liquidity
2 points

Question 20
A ____________ is a short-term debt instrument issued by commercial banks in denominations of $100,000 or more with typical maturities ranging from one month to one year that have an active secondary market that allows short-term investors to easily match their cash or liquidity needs when they arise.
Answer

negotiable certificate of deposit (NCD)

A repurchase agreement

government bond

money market security

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