Keep in mind that in the quiz, the answers options may be in a different order
1 - 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 are known as:
Answer: Financial Institutions
2 - An area of finance that involves the sale or marketing of securities, the analysis of securities, and the management of investment risk is referred to as
Answer: Investments
3 - This involves financial planning, asset management, and fund-raising decisions to enhance the value of businesses
Answer: Financial management
4 - This is the study of how individuals prepare for their financial emergencies, protect against premature death and property losses, and accumulate wealth.
Answer: Personal finance
5 - Reasons we study finance include all of the following except:
Answer: To make informed medical decisions
6 - __________ behavior refers to how an individual or organization treats others legally, fairly, and honestly.
Answer: Ethical
7 - The six principles of finance include all of the following except:
Answer: Larger capital amounts are charged higher interest
8 - Two risky assets can be combined to lower the overall risk of a portfolio. This principle is commonly referred to as
Answer: Diversification
9 - Rational investors would consider an investment in a risky business venture only if they feel the expected return is high enough to justify the
Answer: Greater risk
10 - The theory of __________ implies that information is quickly embedded in prices of the securities
Answer: Efficient markets
1 - 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 are known as:
Answer: Financial Institutions
2 - An area of finance that involves the sale or marketing of securities, the analysis of securities, and the management of investment risk is referred to as
Answer: Investments
3 - This involves financial planning, asset management, and fund-raising decisions to enhance the value of businesses
Answer: Financial management
4 - This is the study of how individuals prepare for their financial emergencies, protect against premature death and property losses, and accumulate wealth.
Answer: Personal finance
5 - Reasons we study finance include all of the following except:
Answer: To make informed medical decisions
6 - __________ behavior refers to how an individual or organization treats others legally, fairly, and honestly.
Answer: Ethical
7 - The six principles of finance include all of the following except:
Answer: Larger capital amounts are charged higher interest
8 - Two risky assets can be combined to lower the overall risk of a portfolio. This principle is commonly referred to as
Answer: Diversification
9 - Rational investors would consider an investment in a risky business venture only if they feel the expected return is high enough to justify the
Answer: Greater risk
10 - The theory of __________ implies that information is quickly embedded in prices of the securities
Answer: Efficient markets