Questions from Financial Markets

Q: 1. Which of the following is measured by viewing a person’s

1. Which of the following is measured by viewing a person’s past credit history to see the person’s willingness to pay bills on time? a. Character b. Capacity c. Collateral d. Conditions 2. Exam...

Q: 1. Reducing working capital such as inventory can result in which

1. Reducing working capital such as inventory can result in which of the following? a. Increased cash b. Higher profits c. Lower financing costs d. All of the choices are correct. 2. What does a...

Q: 1. RFID tags do which of the following? a

1. RFID tags do which of the following? a. Help to track inventory and can reduce theft b. Indicate who the best-paying customers are c. Alert credit bureaus to improper credit card usage d. Reduc...

Q: 1. Which of the following describes a firm’s working capital?

1. Which of the following describes a firm’s working capital? a. The firm’s operating assets such as trucks, airplanes, and machinery b. The same as stockholders’ equity c. The money needed to star...

Q: 1. A firm can estimate its short-term financing needs

1. A firm can estimate its short-term financing needs by which of the following? a. Using a cash budget b. Estimating its external financing needs c. Comparing credit sales to expenses d. The perc...

Q: 1. Which of the following is a major difference between a

1. Which of the following is a major difference between a bank line of credit and a revolving credit agreement? a. The line of credit cannot be renewed but the revolver automatically renews each year...

Q: 1. Trade credit represents which of the following? a

1. Trade credit represents which of the following? a. The least formal of all forms of financing b. The most important form of short-term business financing c. Funds owed to a firm’s suppliers d....

Q: 1. Which of the following are two types of accounts receivable

1. Which of the following are two types of accounts receivable financing? a. Accounts payable and notes payable b. Notes payable and promissory notes c. Factoring and accounts payable d. Pledging...

Q: 1. Which of the following is not a means for a

1. Which of the following is not a means for a business owner to personally guarantee a loan for his/her business? a. Co-maker loan b. Life insurance loan c. Stock and bonds as loan collateral d....

Q: 1. Which Act allowed banks to receive federal charters?

1. Which Act allowed banks to receive federal charters? a. National Banking At of 1864 b. Federal Reserve Act of 1913 c. Glass-Steagall Act of 1933 d. Depository Institutions Deregulation and Mone...