An Introduction to Finance Concepts with Solutions

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Finance Correct Answer The study of how and under what terms funds are allocated between those with excess fund and those who need funds. How can we view finance as "applied economics"? Correct Ans ... wer Economics deals with the allocation of scarce resources in an economy, whereas finance focuses on how resources are allocated and by what channels, as well as the terms of the allocation. What are the 3 primary areas of finance? Correct Answer Financial Institutions, Business (Corporate) Finance, and Investments Financial Institutions Correct Answer an entity that serves as an intermediary in the financial system. Examples of Financial Institutions Correct Answer Banks, Credit Unions, and financial firms Business Finance Correct Answer an entity that deals w/ financial decision making for a business What does financial decision making encompasses? Correct Answer investment and financing decisions, which may be short-term or long-term decisions Investments Correct Answer deals w/ financial markets and securities Examples of Business Finance Correct Answer Corporations, Sole Proprietorships, etc. [Show More]

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