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FINANCIAL MANAGEMENT MIDTERM EXAM2024 | 3 ACCURATE CURRENCTLY TESTING VERSIONS WITH QUESTIONS AND ANSWERS EACH PLUS A STUDY GUIDE | EXPERT VERIFIED FOR GUARANTEED PASS | LATEST UPDATE$17.99
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FINANCIAL MANAGEMENT MIDTERM EXAM2024 | 3 ACCURATE CURRENCTLY TESTING VERSIONS WITH QUESTIONS AND ANSWERS EACH PLUS A STUDY GUIDE | EXPERT VERIFIED FOR GUARANTEED PASS | LATEST UPDATE
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Course
FINANCIAL MANAGEMENT
Institution
FINANCIAL MANAGEMENT
FINANCIAL MANAGEMENT MIDTERM EXAM2024 |
3 ACCURATE CURRENCTLY TESTING
VERSIONS WITH QUESTIONS AND
ANSWERS EACH PLUS A STUDY GUIDE |
EXPERT VERIFIED FOR GUARANTEED
PASS | LATEST UPDATE
FINANCIAL MANAGEMENT MIDTERM EXAM2024 |
3 ACCURATE CURRENCTLY TESTING
VERSIONS WITH QUESTIONS AND
ANSWERS EACH PLUS A STUDY GUIDE |
EXPERT VERIFIED FOR GUARANTEED
PASS | LATEST UPDATE
A low inventory turnover ratio suggests that: - ✔✔ANSW✔✔..the firm is holding excess
stocks of inventory.
Which of the following ratios measures how effectively a firm is managing its assets? -
✔✔ANSW✔✔..Inventory turnover ratio
Investors with a _____ will demand a higher rate of return. - ✔✔ANSW✔✔..higher time
preference for consumption
Deficit trade balance hinders the Federal Reserve's ability to combat a recession by
lowering interest rates. - ✔✔ANSW✔✔..TRUE
The value of an asset is the future value of the future cash flows that the asset is
expected to generate during its life. - ✔✔ANSW✔✔..FALSE
In general, when rates in the financial markets increase, the prices (values) of financial
assets decrease. - ✔✔ANSW✔✔..TRUE
A depository institution that is owned by its depositors, who are often members of a
common organization or association, such as an occupation, a religious group, or a
community is called a(an) - ✔✔ANSW✔✔..credit union
Which of the following financial intermediaries operates as a not-for-profit organization?
- ✔✔ANSW✔✔..Credit union
,Investment companies at use the money provided by savers to buy various types of
financial assets, including stocks and bonds are called _____. - ✔✔ANSW✔✔..mutual
funds
An annuity with payments that occur at the beginning of each period is known as a -
✔✔ANSW✔✔..annuity due
A firm makes investments of $2,000 this year, $4,000 next year, and $2,500 the
following year. This form of payment represents a(n) _____. - ✔✔ANSW✔✔... uneven
cash flow stream
The yield curve is downward sloping, or inverted, if the inflation rates are expected to
increase. - ✔✔ANSW✔✔..FALSE
If the Federal Reserve tightens the money supply, other things held constant, short-term
interest rates will be pushed upward, and this increase will probably be greater than the
increase in rates in the long-term market. - ✔✔ANSW✔✔..TRUE
1. The process by which commercial banks transform funds provided by savers into
funds used by borrowers is called _____. - ✔✔ANSW✔✔..financial intermediation
Credit unions, mutual funds, and thrift institutions are all examples of -
✔✔ANSW✔✔..financial intermediaries
________ can be more than or less than the price you paid for a given asset, depending
on what others are willing to pay for that asset today. - ✔✔ANSW✔✔..Fair market value
A financial plan is only concerned with your future earnings and expenses. An
examination of your current financial situation is not so important. -
✔✔ANSW✔✔..FALSE
A method by which one can compare cash flows across time—either as what a future
cash flow is worth today (present value) or what an investment made today will be worth
in the future (future value)—is called - ✔✔ANSW✔✔..time-value of money.
A one-time investment of $1,500 at a 10 percent annual rate of return yields $2,196 in
two years. The $2,196 is known as the - ✔✔ANSW✔✔..future value.
A regressive tax rate is one that increases as you make more income. -
✔✔ANSW✔✔..FALSE
A regressive tax rate is one that increases as you make more income. -
✔✔ANSW✔✔..FALSE
, A tax system in which tax rates increase as income increases is called a(n) ________
system. - ✔✔ANSW✔✔..progressive tax
A tax system in which tax rates increase as income increases is called a(n) ________
system. - ✔✔ANSW✔✔..progressive tax
A vehicle leased in your name is an example of a tangible asset that you would list on
your balance sheet. - ✔✔ANSW✔✔..FALSE
According the Keown book, most taxes, about 30 percent of individual income taxes,
are collected through withholding from wages. - ✔✔ANSW✔✔..FALSE
According the Keown book, most taxes, about 30 percent of individual income taxes,
are collected through withholding from wages. - ✔✔ANSW✔✔..FALSE
According to the Keown book, one way to think of liquid assets is as a(n) -
✔✔ANSW✔✔..reservoir, with money moving in as wages are received and moving out
as living expenses are paid.
According to the Keown book, the median net worth for American families in which the
head of the household is less than 35 years old is below $10,000. -
✔✔ANSW✔✔..TRUE
Adjusted gross income is your total gross income adjusted for inflation. -
✔✔ANSW✔✔..FALSE
Adjusted gross income is your total gross income adjusted for inflation. -
✔✔ANSW✔✔..FALSE
Allowing the interest that you earn on an investment to stay in the investment and to
earn interest on the interest you have already earned is called what? -
✔✔ANSW✔✔..The power of compound interest
An investment earning 12 percent interest per year should double in value in
approximately four years. - ✔✔ANSW✔✔..FALSE
An IRS-allowed reduction in your income for yourself, your spouse, and any dependents
that is subtracted before you compute your taxes is called a(n) -
✔✔ANSW✔✔..personal exemptions
An IRS-allowed reduction in your income for yourself, your spouse, and any dependents
that is subtracted before you compute your taxes is called a(n) -
✔✔ANSW✔✔..personal exemptions
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