Fin 3400 Corbett Homework chapter 1

1. In 2006, a significant indicator of the U.S. economic decline was:
A. a significant drop in interest rates
B. a sharp increase in unregulated Ponzi-type security sales
C. rising defaults by subprime mortgage borrowers
D. a large increase in loan default due to unemployment
2. The financial crisis that started in 2006 was magnified by which of the following:
A. Public concern over the war in Afghanistan
B. Consistently increasing oil and gas prices
C. Ethical issues affecting high value investment
D. Mortgage lenders securitizing large quantities of their loans
4. This subarea of finance involves methods and techniques to make appropriate decisions about what kinds of securities to own, which firms' securities to buy, and how to be paid back in the form that the investor wishes.
A. real markets
B. investments
C. financial management
D. none of these
5. This subarea of finance looks at firm decisions in acquiring and utilizing cash received from investors or from retained earnings.
A. investments
B. financial management
C. treasury management
D. none of these
7. This subarea of finance helps facilitate the capital flows between investors and companies.
A. investments
B. financial management
C. treasury management
D. financial institutions and markets
10. This is a general term for securities like stocks, bonds, and other assets that represent ownership in a cash flow.
A. investment
B. financial asset
C. real asset
D. financial markets
12. Which of the following managers would NOT use finance?
A. Operational managers
B. Marketing managers
C. Human resource managers
D. All of these would use finance
15. This type of business organization is relatively easy to start, and it is subject to much lighter regulatory and paperwork burden than other business forms.
A. Sole proprietorship