Unit 8 Test

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School

Eastern Gateway Community College *

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101

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Finance

Date

Jan 9, 2024

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docx

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Uploaded by ChancellorSandpiperPerson690

Unit 8 Test  Due Dec 17 at 11:59pm  Points 40  Questions 40  Available Dec 11 at 12am - Dec 17 at 11:59pm  Time Limit None  Allowed Attempts 2 Take the Quiz Again Attempt History Attempt Time Score LATEST Attempt 1 5 minutes 40 out of 40 Correct answers are hidden.

Score for this attempt: 40 out of 40 Submitted Dec 11 at 1:21pm This attempt took 5 minutes. Question 1 1 / 1 pts Money is anything that is acceptable as payment for goods and services. True False Question 2 1 / 1 pts Durability and simplicity are two important characteristics of money. True False Question 3 1 / 1 pts Another term for a checking account is a time deposit. True False Question 4

1 / 1 pts Examples of time deposits are savings accounts, money market deposit accounts, and certificates of deposit. True False Question 5 1 / 1 pts The three tools used by the Federal Reserve to manage monetary policy are reserve requirements, the prime rate, and the discount rate. True False Question 6 1 / 1 pts By lowering the reserve requirement, the Federal Reserve tries to make more money available for loans and stimulate the economy. True False Question 7 1 / 1 pts The prime rate is the interest rate that the Federal Reserve charges member banks for loans.

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True False Question 8 1 / 1 pts Margin requirements tell the minimum amount of cash an investor must put up when borrowing from a bank or brokerage firm to purchase stock. True False Question 9 1 / 1 pts Depository financial institutions include commercial banks, thrift institutions, and credit unions. True False Question 10 1 / 1 pts National banks must belong to the Federal Reserve System and must carry FDIC insurance. True

False Question 11 1 / 1 pts ______ is anything (regardless of form) that is acceptable as payment for goods and services. Money A fixed asset Shareholders' equity Revenue Capital Question 12 1 / 1 pts Any object or objects that a group of people use to buy and sell goods and services is called: an earned deposit capital

a countertrade money revenue Question 13 1 / 1 pts Items that groups of people use as money must be _____ to be acceptable mediums of exchange. valuable, durable, compatible and scarce portable, sortable, profitable, and divisible compatible, durable, universal, sortable scarce, divisible, portable, and durable distributable, durable, comparable and valuable Question 14 1 / 1 pts Which of the following is NOT one of the key characteristics required in order for money to be an acceptable medium of exchange?

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portability profitability divisibility durability scarcity Question 15 1 / 1 pts Cupcakes, hamburgers, and cut flowers would not make good mediums of exchange because they lack the key characteristic of: divisibility durability profitability exchangeability compatibility

Question 16 1 / 1 pts The _____ characteristic of money is revealed by the fact that a dollar can be converted into four quarters or ten times. divisibility durability portability scarcity compatibility Question 17 1 / 1 pts Boulders, building trusses, and lead ingots would not make good mediums of exchange because they lack the key characteristic of: portability divisibility scarcity

durability compatibility Question 18 1 / 1 pts Weeds, sand, and paper clips would not make good mediums of exchange because they lack the key characteristic of: divisibility compatibility portability durability scarcity Question 19 1 / 1 pts Money is used as: all of the above a store of value

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a standard of value a medium of exchange a means of payment Question 20 1 / 1 pts Ruth Hu recently inherited $200,000. She has invested the inherited money in real estate and government securities. Hu is using her money as a: medium of exchange measure of wealth measure of value commodity of exchange store of value Question 21 1 / 1 pts Financial management is the art and science of managing a firm's money so the firm can meet its goals.

True False Question 22 1 / 1 pts In finance, the opportunity for a profit is called return. True False Question 23 1 / 1 pts In finance, the potential for loss is called probability. False True Question 24 1 / 1 pts Treasury bills, certificates of deposit, and mortgage loans are the most popular marketable securities. True

False Question 25 1 / 1 pts Sales made, but for which payment has not yet been collected, are called accounts payable. True False Question 26 1 / 1 pts The benefits from capital expenditures extend beyond one year's time. True False Question 27 1 / 1 pts Trade credit is credit extended to the buyer by the seller. It is entered in the buyer's books as an account receivable. False True

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Question 28 1 / 1 pts Lines of credit are short-term loans that are secured by collateral. True False Question 29 1 / 1 pts Accounts receivable or inventory usually secures short-term secured loans. False True Question 30 1 / 1 pts Selling a firm's accounts receivables to a financial institution at a discount is called countertrading. True False Question 31 1 / 1 pts

_____ management is the art and science used to determine the most effective ways to acquire and use funds to achieve the firm's goals. Money Operations Accounting Corporate Financial Question 32 1 / 1 pts Keisha Hunter keeps track of day-to-day operational data to make sure her employer has enough cash to run the business and will determine if and when the company she works for should open a second distribution center. Hunter is a(n) _____ manager. accounting operations facilities analysis

financial Question 33 1 / 1 pts Financial managers: are not typically involved in long-term strategic planning focus on profit maximization play such an important organizational role that they often are called operations managers are described by none of the above are simply a type of bookkeeper Question 34 1 / 1 pts Financial managers focus on _____, the inflow and outflow of cash. sales revenues financial flows

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profit and loss patterns cash flows revenue streams Question 35 1 / 1 pts The primary goal of the financial manager is to: pay off all debt as quickly as possible concentrate on short-term growth strategies develop new goods and services for the company maximize the value of the firm to its owners make sure all employees get paid on a regular schedule Question 36 1 / 1 pts Financial managers constantly strive for a balance between: the opportunity for profit and the potential for loss

dividends paid out and interest payments economic responsibility and social responsibility cash and marketable securities common and preferred stock Question 37 1 / 1 pts In finance, _____ is the potential for loss. probability leverage business chance factoring risk Question 38 1 / 1 pts In finance, the opportunity for profit is called:

potential return maximization risk value Question 39 1 / 1 pts In seeking a balance between the opportunity for profit and the potential for loss, a financial manager is dealing with the concept of _____ trade-off. risk-return profit-loss profit-budget sales-profit potential profit

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Question 40 1 / 1 pts Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called cash: capitalization administration targeting management maintenance Quiz Score: 40 out of 40