QUIZ 1 NEW
• Question 1
The financial environment:
• Question 2
Rational investors would consider an investment in a risky business venture only if they feel the expected return is high enough to justify the
• Question 3
The theory of ___________________ implies that information is quickly embedded in prices making it difficult for investors to “beat the market.”
• Question 4
_______________ is the study of how individuals prepare for financial emergencies, protect against premature death and the loss of property, and accumulate wealth over time.
• Question 5
________________ involves making decisions relating to issuing and investing in stocks and bonds.
• Question 6
____________________ in business involves making decisions relating to the efficient use of financial resources in the production and sale of goods and services.
• Question 7
___________________ are intermediaries, such as banks, insurance companies, and investment companies that engage in financial activities to aid the flow of funds from savers to borrowers or investors.
• Question 8
An area of finance that involves the study of organizations or intermediaries that help the financial system operate efficiently and transfer funds from savers and investors to individuals, businesses, and governments that seek to spend or invest the funds in physical assets (inventories, buildings, and equipment) is called:
• Question 9
The primary securities markets are
• Question 10
_______________ is the study of how growth-driven, performance-focused, early-stage (from development through early rapid growth) firms raise financial capital and manage their operations and assets.
• Question 11
_______________________ is the sum of an individual’s money, real assets, and financial assets or claims against others less the individual’s debt obligations.
• Question 12
Deposit money is backed by:
• Question 13
The three functions of money are:
• Question 14
Paper money popularly called continentals was issued by the U.S. government to help finance which of the following wars?
• Question 15
A measure of the output of goods and services in an economy is called:
• Question 16
Paper money fully backed by a precious metal and issued by the government is called:
• Question 17
The supply of a currency in international markets depends largely on the:
• Question 18
When it is a means of paying for goods and services and discharging debts, money is referred to as a:
• Question 19
Money decreed to be “legal tender” for the payment of debts is money backed by:
• Question 20
_____________ are very short-term loans, usually with maturities of one day to one week made between depository institutions.
