Economics is a subfield of Finance (t/f) 1.1 CORRECT ANSWER F. Finance is a subfield of Economics. (right answer)
Which of the following is not an
... [Show More] example of firm capital? 1.1 CORRECT ANSWER Financial markets
Which of the following are examples of firm capital? 1.1 CORRECT ANSWER Cash, Labor, Machinery
Capital is defined as a financial asset. (t/f) 1.1 CORRECT ANSWER T. Capital is defined as a financial asset.
Corporate finance is devoted to understanding various types of financial instruments. (t/f) 1.1 CORRECT ANSWER F. Investments is devoted to understanding various types of financial instruments. (right answer)
Which of the following is an example of firm capital? 1.1 CORRECT ANSWER Cash
Corporate finance focuses on the decision making by the management of the firm. (t/f) 1.1 CORRECT ANSWER T. Corporate finance focuses on the decision making by the management of the firm.
What are the three important areas of finance discussed in this section?1.1 CORRECT ANSWER Corporate Finance, Investments, and Banking/financial institutions
Banks make money when interest rates they charge to borrowers are less than interest rates they pay depositors. (t/f) 1.1 CORRECT ANSWER F. Banks make money when interest rates they charge to borrowers are MORE than interest rates they pay depositors. (right answer)
Stocks and bonds are two types of financial instruments. t/f 1.1 CORRECT ANSWER T. Stocks and bonds are two types of financial instruments.
Stock represents ownership in a particular company. t/f 1.2 CORRECT ANSWER T. Stock represents ownership in a particular company.
Companies can raise capital by issuing bonds or stocks. t/f 1.2 CORRECT ANSWER T. Companies can raise capital by issuing bonds or stocks.
A stock is a debt instrument issued by corporations. t/f 1.2 CORRECT ANSWER F. A stock represents ownership in a company (right answer)
A Treasury bond is a debt instrument issued by corporations. t/f 1.2 CORRECT ANSWER F. A Treasury bond is a debt instrument issued by governments. (right answer)
A bond is a debt instrument issued by corporations or governments. t/f 1.2 CORRECT ANSWER T. A bond is a debt instrument issued by corporations or governments.
A stock is a share of ______________ in a particular company. 1.2 CORRECT ANSWER ownership 1.2
A bond is similar to a loan. t/f 1.2 CORRECT ANSWER T A bond is similar to a loan.
Primary financial markets are markets where issuers place new securities with investors. t/f 1.3 CORRECT ANSWER T. Primary financial markets are markets where issuers place new securities with investors.
What are the two ways a syndicate can place a bond? 1.3 CORRECT ANSWER Competitive sale or negotiated sale
An IPO is a seasoned equity offering. t/f 1.3 CORRECT ANSWER false. IPO is new equity offering (right answer)
An IPO occurs on the primary market. t/f 1.3 CORRECT ANSWER T An IPO occurs on the primary market.
Syndicates are generally made up of investment banks and other institutional investors. t/f 1.3 CORRECT ANSWER T Syndicates are generally made up of investment banks and other institutional investors.
While competitive sales allow underwriters to submit bids to purchase bonds, negotiated sales do not. t/f 1.3 CORRECT ANSWER F negotiated and competitive sales both submit bids. negotiated sales more involved (right answer)
NASDAQ is the world's largest secondary financial market. t/f 1.4 CORRECT ANSWER F The NYSE is the world's largest secondary financial market. (right)
Auction markets have a physical location. t/f 1.4 CORRECT ANSWER T Auction markets have a physical location. (right)
Dealer markets have a physical location. t/f 1.4 CORRECT ANSWER F Auction markets have a physical location. Dealer markets do not. (right)
Nasdaq is an example of an auction market. t/f 1.4 CORRECT ANSWER F Nasdaq is an example of a dealer market. (right) [Show Less]