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Quiz 1 Practice Questions - Survey of Financial Management | FINA 3004, Quizzes of Finance

Material Type: Quiz; Professor: Smith; Class: Survey of Financial Management; Subject: Finance; University: East Carolina University; Term: Fall 2012;

Typology: Quizzes

2011/2012

Uploaded on 09/18/2012

lildetter15
lildetter15 🇺🇸

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Round lots are: securities transactions that are in multiples of 100 shares
A firm raises capital to finance new equipment by selling bonds in the: primary
market
A bid price is: the price a dealer is willing to pay for a security
Which of the following is not considered a capital market security: foreign
currencies
Federal funds are: loaned by one financial institution to another
The main goal of the financial manager is to increase the firms overall profits: false
The largest provider of funds in the financial system is: individuals
A firms earnings are a true representation of cash flows available to the
stockholders: false
In a corporation, profits are generally measured in terms of earnings per share: true
Which of the following topics are included in a broad-based study of finance?
Answers A and B only
Which of the following is a true statement? The required return from securities
usually fluctuates with changes in risk
Total shareholder wealth can be calculated by: multiplying the number of shares
outstanding by the market price per share
$100 today is worth: more than $100 to be received in one year since you can invest
the money received today for this period, leaving you with more than $100 in the
future
Wise investors hold ______ in their portfolios to ______ their risk: a variety of
securities; reduce
Which of the following policies or institutional changes would make a securities
market more efficient? Improving the timeliness and accuracy of information flows
from firms and securities markets to investors
The money market involves the buying and selling of: short-term funds
Shares of ____ are units of ownership interest, or equity, in a corporation: common
stock
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Round lots are: securities transactions that are in multiples of 100 shares A firm raises capital to finance new equipment by selling bonds in the: primary market A bid price is: the price a dealer is willing to pay for a security Which of the following is not considered a capital market security: foreign currencies Federal funds are: loaned by one financial institution to another The main goal of the financial manager is to increase the firms overall profits: false The largest provider of funds in the financial system is: individuals A firms earnings are a true representation of cash flows available to the stockholders: false In a corporation, profits are generally measured in terms of earnings per share: true Which of the following topics are included in a broad-based study of finance? Answers A and B only Which of the following is a true statement? The required return from securities usually fluctuates with changes in risk Total shareholder wealth can be calculated by: multiplying the number of shares outstanding by the market price per share $100 today is worth: more than $100 to be received in one year since you can invest the money received today for this period, leaving you with more than $100 in the future Wise investors hold ______ in their portfolios to ______ their risk: a variety of securities; reduce Which of the following policies or institutional changes would make a securities market more efficient? Improving the timeliness and accuracy of information flows from firms and securities markets to investors The money market involves the buying and selling of: short-term funds Shares of ____ are units of ownership interest, or equity, in a corporation: common stock

Which of the following does not need to be considered when assessing the impact of financial decision? All of the above must be considered T-bonds are money market securities, while T-bills and T-notes are traded in the capital market Common stockholders expect to receive a return through capital gains and: dividends Shares of ____ are units of ownership interest, or equity, in a corporation: common stock The cost of borrowing funds is most commonly called the interest rate: true If a $1,000 bond is quoted at 120:16 the price of the bond is _____: 1205. Preferred stock pays a variable dividend: false Earnings should retained only if the firm needs capital very badly and would have difficulty raising it from external sources: false _____ can be defined as the art and science of managing money: finance If the managers of a company are not the owners of the company, they are considered: agents A firms earnings are a true representation of cash flows available to the stockholders: false In a corporation, profits are generally measured in terms of earnings per share: true Which of the following statements is true? Dealers play a crucial role by providing liquidity in thin markets A firm raises capital to finance new equipment by selling bond in the: primary market Among the services provided by financial markets are: all of the above Developed financial markets increase: liquidity Which of the following statements about Treasury bills is true? Investors holding them do not receive periodic interest payments The primary role of a financial system is to: channel funds from savers to borrowers who need funds for investment projects