PT Ch01

PT Ch01 - Exam Name___________________________________...

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Unformatted text preview: Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An asset is a possession that has value in an exchange and can be classified as ________. 1) A) financial or intangible. B) tangible or intangible. C) financial or variable. D) fixed or variable. 2) A factor leading to the integration of financial markets is ________. 2) A) technological advances for monitoring domestic markets, executing orders, and analyzing financial opportunities. B) technological advances for monitoring world markets, executing orders, and disregarding financial opportunities. C) decreased institutionalization of financial markets. D) increased monitoring of markets. 3) Business entities include nonfinancial and financial enterprises. ________ manufacture products such as cars and computers and/or provide nonfinancial services such as transportation and utilities. 3) A) Nonfinancial enterprises B) Financial enterprises C) Both financial and nonfinancial enterprises D) None of these 4) Financial markets provide three economic functions. Which of the below is NOT one of these? 4) A) Financial markets provide a mechanism for an investor to sell a financial asset. B) Financial markets increases the cost of transacting. C) The interactions of buyers and sellers in a financial market determine the required return on a financial asset. D) The interactions of buyers and sellers in a financial market determine the price of the traded asset. 5) A(n) ________ such as plant or equipment purchased by a business entity shares at least one characteristic with a financial asset: Both are expected to generate future cash flow for their owner. 5) A) intangible asset B) balance sheet asset C) cash asset D) tangible asset 6) A principal economic function to transfer funds from those who have ________ to invest to those who need funds to invest in ________. 6) A) deficit funds; tangible assets. B) surplus funds; tangible assets. C) deficit funds; intangible assets. D) surplus funds; intangible assets. 7) The financial asset is referred to as a ________ if the claim is a fixed dollar. 7) A) debt instrument. B) preferred equity instrument. C) common equity instrument. D) derivative instrument....
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This document was uploaded on 01/24/2012.

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PT Ch01 - Exam Name___________________________________...

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