What are the main services offered by financial institutions? ✔✔Accepting a wide variety of
deposits, offering investment products, providing loans, and brokering financial transactions
What is the main objective of pe
...
What are the main services offered by financial institutions? ✔✔Accepting a wide variety of
deposits, offering investment products, providing loans, and brokering financial transactions
What is the main objective of personal financial goals? ✔✔To maximize individual utility
Which task does the financial manager of a firm perform that involves the issuance of new stocks
and bonds? ✔✔Making financing decisions
Why is understanding the definition of finance important in managing personal finances? ✔✔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? ✔✔Primary
market
Which type of financial institution is a mutual fund? ✔✔Investment institutionWhich financial institution specializes in managing and administering retirement funds?
✔✔Pension funds
Which type of economic indicator is the consumer price index? ✔✔Lagging indicator
What does the term ethical refer to? ✔✔The accepted standards of conduct that guide a person's
behavior
A company's officers and board of directors are selling their stocks in the firm at higher prices
due to false accounting reports that made the stock seem more valuable than it truly was. Which
ethical issue is occurring in this situation? ✔✔Agency problem due to conflicting interests
Which area of finance involves deciding which assets to invest in to create wealth in the future?
✔✔Investments
What is the main goal of a firm? ✔✔To maximize owner wealthWhat are financial managers doing if they evaluate whether it is worth spending money on
research and development for a new product? ✔✔Making an investment decision
Which type of financial market is where securities such as stocks and bonds are traded after their
initial issuance? ✔✔The secondary financial market
What type of financial institution is an insurance company? ✔✔Contractual
Which financial institution invests funds contributed by a company to provide retirement funds
for the company's employees? ✔✔Pension fund
Personal income is which type of economic indicator? ✔✔Coincident
Which term refers to something that conforms with accepted standards of conduct that guide a
person's behavior? ✔✔Ethical
What is the second step in finding a solution to an ethical dilemma? ✔✔Consider alternative
courses of actionHow can agency problems be reduced through corporate control? ✔✔Executive compensation
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