D076 OA Exam with Verified Answers Graded A+
1. B. Accepting a
wide variety of
deposits, offer-
ing investment
products, provid-
ing loans, and
brokering finan-
cial transactions
2. B. To maximize
individual utility
3. A. Making financ-
ing decisions
4.
What are the main services offe...
D076 OA Exam with Verified Answers Graded A+
1. B. Accepting a What are the main services offered by financial institu-
wide variety of tions?
deposits, offer-
ing investment A. Soliciting charitable donations and then managing
products, provid- thedistribution of these funds
ing loans, and
brokering finan- B. Accepting a wide variety of deposits, offering invest-
cial transactions ment products, providing loans, and brokering financial
transactions
C. Deciding which assets to invest in to create wealth in
the future
D. Evaluating sources of funding for a business project, the
capital structure of a firm, or actions managers could take
to increase the value of the firm
2. B. To maximize What is the main objective of personal financial goals?
individual utility
A. To maximize stock investments
B. To maximize individual utility
C. To maximize charity donations
D. To maximize owner wealth
3. A. Making financ- Which task does the financial manager of a firm perform
ing decisions that involves the issuance of new stocks and bonds?
A. Making financing decisions
B. Managing working capital
C. Deciding on accounting standards
D. Making investing decisions
4.
, D076 OA Exam with Verified Answers Graded A+
A. It helps indi- Why is understanding the definition of finance important in
viduals compare managing personal finances?
the costs and
benefits of an ac- A. It helps individuals compare the costs and benefits of
tion to determine an action to determine whether to take that action.
whether to take
that action. B. It helps individuals act ethically with regard to finances.
C.It helps individuals understand legal issues related to
finance.
D. It allows individuals to find an investment with the high-
est return possible.
5. Primary market In which type of market would a company issue bonds or
stocks for the first time?
Dealer market
Primary market
Secondary market
Money market
6. Investment insti- Which type of financial institution is a mutual fund?
tution
Contractual institution
Depository institution
Investment institution
Federal institution
7. Pension funds Which financial institution specializes in managing and
administering retirement funds?
Investment banks
, D076 OA Exam with Verified Answers Graded A+
Mutual funds
Pension funds
Private equity
8. Lagging indica- Which type of economic indicator is the consumer price
tor index?
Leading indicator
Coincident indicator
Forecasting indicator
Lagging indicator
9. The accepted What does the term ethical refer to?
standards of con-
duct that guide a The accepted standards of conduct that guide a person's
person's behav- behavior
ior
An idea or thing used as a measure, norm, or model in
comparative evaluations
One's beliefs about right and wrong, good and bad, or just
and unjust
Following the laws and rules set by an authority
10. Agency problem A company's officers and board of directors are selling
due to conflicting their stocks in the firm at higher prices due to false ac-
interests counting reports that made the stock seem more valuable
than it truly was. Which ethical issue is occurring in this
situation?
Conflict between work and personal affairs
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