Finanace Exam Practice

Supervised by the Federal Reserve Board, the DAB Company provides investment advisory services, insurance underwriting, securities underwriting, and merchant backing services. What does the DAB Company exemplify?

A financial holding company

An economy with a high unemployment level tends to have _____

A lower rate of inflation

What type of person would make the best entrepreneur?

A risk-taker who has a strong work ethic

What is an important aspect of a customer-centric business?

Aligning business activities with customer needs

What type of financial statement includes an accounting of the shareholders' equity for a company?

Balance Sheet

When filing a tort against a business, the plantiff must establish that the defendant _______

Breached the duty of care

What is one of the benefits to a business of reinforcing service orientation through communication?

Builds positive relationships with customers

What is the first step Cameron should take to protect himself form identity theft after he loses his wallet?

Cancel all of his credit and debit cards

One advantage to businesses of using electronic funds transfer technology to collect accounts receivable is that it eliminates _____

Check processing

Beverly, the new office manager, just completed a review of the last two years of accounts receivable data. In doing so, she discovered that there are erroneous duplicate entries totaling $25,628 in the system. Unfortunately, due to these duplicate entires, collection letters were sent to many costumers who have already paid in full - customers who are angry with the company for sending them the letters. What should Beverly do to try to save these customer relationships and ensure that these customers are not bothered in the future?

Complete a data cleansing of the erroneous entries

The process of activity of using goods is called

Consumption

The best description of the taxation of Roth IRAs is _____

Contributions are taxed, but withdrawals during retirement are tax deductible

If Hannah wants to invest in the capital markets, what types of securities should she purchase?

Corporate bonds and preferred stock

Identify the type of appeal used in the following persuasive message: "This new book is written by Dr. Juliet Brown, who holds a doctorate from the Harvard School of Medicine and is the Chair of the World Health Organization."

Credibility

What are examples of deposit-taking financial institutions?

Credit unions, savings and loans associations, and commercial banks

Barry's family is originally from Ireland. Their customs, habits, and traditions are known as their ______

Culture

Insecure people are often afraid to become assertive because they think they will _____

Damage their relationships

What do some investors use to hedge the risk of investing in the foreign exchange market?

Derivatives

While conducting a staff meeting, the speaker noticed that Colin was texting on his smartphone. Colin's nonverbal behavior indicates that he was ______

Distratced

One way that individuals exhibit self-confidence is by being _____

Enthusiastic

One way a leader can encourage other to work toward a shared vision is by ______

Explaining how they will benefit

At work, Bob is assigned to be on a team of five people that will creat a new product. Which action can Bob take to participate in the team in a useful way?

Find out what other people in the group know about the product

John decided to promote Bill instead of Maggie because he thinks women aren't assertive enough in management positions. John is stereotyping on the basis of _____

Gender

What type of informal communication that coworkers often use to communicate with each other

Grapevine

According to most analysts, the three economic indicators that stock market investors and traders should pay the closest attention to are _____

Gross Domestic Product, unemployment, and inflation

The key factors involved in compounding growth are the amount of money you invest, how much your investment grows each year, and ________

How long your money is invested

If the original price of red apples is $0.60 per pound and the original price of green apples is $0.80 per pound, what is an example of a change in the relative pricing ratio?

If red apples become priced at $0.90 per pound, but green apples remain at $0.80 per pound

What can describe the matrix organizational structure?

It is a combination of two other organizational structures

Maureen becomes angry and defensive when she receives criticism, which is not a good attitude because ______

It prevents Maureen from hearing the criticism clearly

What is an example of an employee respecting the privacy of a coworker?

Leaving the room when a salesperson takes a telephone call

The general economic growth of a country is supported by its ______

Level of productivity

Coaching is mostly about

Listening

Determining what consumers want in order to promote and sell those goods and services is a function of _______

Marketing

An example of a voluntary debtor-creditor relationship is ______

Obtaining a loan from a bank

Alma is preparing a presentation about her department's budget to make the company president. She wants to use a visual representation of the budget that shows parts in elation to the whole. Alma should consider using a _____

Pie chart

The most common headings on a stock table include the 52-week high and low, the stock symbol, the estimated dividend per share, the yield percentage?rate of return, the volume/sales for the day, the closing price for the day, the net change, and the ______

Price-earning ratio

When the U.S. Federal Government owes money to a contracted employee or business, the government must pay the employee or business according to the ______

Prompt Payment Act.

When Mr. Schwarz's order did not arrive at the expected time, he called Karl, the salesperson with whom he had placed his order. Karl apologized for the delay and told mr. Schwarz that he would check into the issue. After Karl talked with the transportation company, he immediately called Mr. Schwarz to let him know where the order was and when to expect the delivery. In this situation, Karl reinforced the company's image by _____

Providing an efficient follow-up

Chris purchases 500 shares of HRR stock. Then, he posted false information about HRR on several investment websites to hype up the stock. After driving up the price of HRR stock, Chris quickly sold all of his stock in the company and earned a large profit. The price of the stock then fell again, leaving HRR investors with worthless stock. What type of investment scam did Chris commit?

Pump and dump

Financial planning can be described as a way to ______

Realize what it takes to get the things that you really want

Compliance in the finance industry involves financial institutions operating within _____

Regulatory guidlines

On job of the governance, risk, and compliance (GRC) software system is to ensure compliance with _____

Reporting requirements

Keeping the end goal in mind refers to what standard of excellence that achievement-oriented people set?

Results

When providing product information to clients, finance professionals should use ____

Simple explanations

Before Diann presents her new idea to her boss, she searches the Internet and jots down two statistics that reinforce the idea. This is an example of ______

Supporting ideas with evidence

Seeing the big picture instead of smaller, individual parts is an organizational learning concept know as _____

Systems thinking

Colleen will vote next on the new contract that her union has negotiated with management. Union and management are n the _____ stages of the collective-bargaining process.

Tentative agreement

Businesses usually invest in______

Themselves

What is a type of intangible business property that is protected by law?

Trademark

What type of letter should a business include when sending copies of a contract to a vendor?

Transmittal