100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
GEB1011 Test 2 Questions with All Correct Answers $12.49   Add to cart

Exam (elaborations)

GEB1011 Test 2 Questions with All Correct Answers

 7 views  0 purchase
  • Course
  • GEB1011
  • Institution
  • GEB1011

GEB1011 Test 2 Questions with All Correct Answers What is a convertible security? - Answer- Issuing bonds or preferred stock that contains a conversion feature What is the primary market? - Answer- Financial market in which firms and governments issue securities and sell them initially to th...

[Show more]

Preview 2 out of 10  pages

  • October 26, 2024
  • 10
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • geb1011
  • geb1011 test 2
  • GEB1011
  • GEB1011
avatar-seller
Scholarsstudyguide
GEB1011 Test 2 Questions
with All Correct Answers
What is a convertible security? - Answer- Issuing bonds or preferred stock that contains
a conversion feature

What is the primary market? - Answer- Financial market in which firms and
governments issue securities and sell them initially to the general public

What is an initial public offering (IPO)? - Answer- When a company offers stock for sale
to the general public for the 1st time

What is a secondary market? - Answer- Collection of financial markets in which
previously issued securities are traded among investors

What is the New York Stock Exchange? - Answer- The most famous and one of the
oldest stock markets in the world

What is a commercial bank? - Answer- The largest and probably the most important
financial institution in the United States and in most other countries as well

What is FDIC? - Answer- Federal agency that insures deposits at commercial and
saving banks

What is the limit for an FDIC insurance? - Answer- $250,000

What financial institutions are insured under FDIC? - Answer- Banks

What is a non-depository institution? - Answer- Accept funds from businesses and
households, much of which they then invest

What are 3 examples of a non-depository institution? - Answer- 1. Insurance companies
2. Pension funds
3. Finance companies

What is a mutual fund? - Answer- Financial intermediaries that raise money from
investors by selling shares

What is the federal reserve system's most important function? - Answer- Controlling the
supply of money and credit

, Which tool is so powerful it can cause a sudden and dramatic impact on the money
supply so it is rarely used? - Answer- Reserve requirements

Which tool is used most often? - Answer- Open market operations

What is insider trading? - Answer- Use of material nonpublic information about a
company to make investment profits

What is the role of a financial manager? - Answer- Executives who develop and
implement their firm's financial plan and determine the most appropriate sources and
uses to funds

What is a financial plan? - Answer- Document that specifies the funds needed by a firm
for a period of time, the timing of inflows and outflows, and the most appropriate
sources and uses of funds

What are the basic questions a financial plan answers? - Answer- 1. What funds will the
firm require during the planning period
2. When will it need additional funds
3. Where will it obtain the necessary funds

How does a financial plan differ from an operational plan? - Answer- Operational plans
or usually short term as a financial plan is normally long term

What is a marketable security? - Answer- low-risk securities that either have short
maturities or can be easily sold in secondary markets

What is an account receivable? - Answer- Uncollected credit sales and can be a
significant asset

What is a short-term asset? - Answer- Consist of cash and assets that can be or are
expected to be converted into cash within a year

What is a long-lived asset? - Answer- assets that are expected to produce economic
benefits for more than 1 year

What is a firm's capital structure? - Answer- A firm's debt and equity capital

What is the principle of leverage? - Answer- Increasing the rate of return on funds
invested by borrowing funds
Most manufacturing businesses are considered small if they employ fewer than
_______ workers - Answer- 500

Which of the following is least likely to be a small business? - Answer- A nursing home

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

62555 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.49
  • (0)
  Add to cart