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Exam (elaborations)

D076 OA Questions and Correct Answers the Latest Update

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  • D076 OA
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  • D076 OA

What are the main services offered by financial institutions? A. Soliciting charitable donations and then managing the distribution of these funds B. Accepting a wide variety of deposits, offering investment products, providing loans, and brokering financial transactions C. Deciding which as...

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  • October 26, 2024
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  • 2024/2025
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  • D076 OA
  • D076 OA
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D076 OA Questions and Correct
Answers the Latest Update
What are the main services offered by financial institutions?




A. Soliciting charitable donations and then managing the distribution of these

funds




B. Accepting a wide variety of deposits, offering investment 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

✓ B. Accepting a wide variety of deposits, offering investment products, providing
loans, and brokering financial transactions



What is the main objective of personal financial goals?




A. To maximize stock investments




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B. To maximize individual utility




C. To maximize charity donations




D. To maximize owner wealth

✓ B. To maximize individual utility



Which task does the financial manager of a firm perform 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

✓ A. Making financing decisions



Why is understanding the definition of finance important in managing personal

finances?

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A. It helps individuals compare the costs and benefits of an action to determine

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 highest return possible.

✓ A. It helps individuals compare the costs and benefits of an action to determine
whether to take that action.



In which type of market would a company issue bonds or stocks for the first

time?




Dealer market




Primary market




Secondary market




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Money market

✓ Primary market



Which type of financial institution is a mutual fund?




Contractual institution




Depository institution




Investment institution




Federal institution

✓ Investment institution



Which financial institution specializes in managing and administering retirement

funds?




Investment banks




Mutual funds



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