Financial Management Chapter 1

The movement of money from lender to borrower and back again is known as ________.

• the circle of life

• corporate finance

• the cycle of money

• money laundering

Which of the following best identifies the four main areas of finance?

• Exchange rate management, investments, financial institutions and markets, international finance

• Corporate finance, investments, capital structure, international finance

• Corporate finance, investments, financial institutions and markets, international finance

• Corporate finance, capital budgeting, financial institutions and markets, regulation

The set of financial activities that support the OPERATIONS of a business is best described by which main area of finance?

• Corporate finance

• Investments

• Financial institutions and markets

• International finance

________ is the area of finance concerned with the activities of buying and selling financial assets such as stocks and bonds.

• Investments

• Corporate finance

• International finance

• Financial markets and institutions

"Concern with the multinational elements of financial activities" best describes which of the four main areas of finance?

• Investments

• International finance

• Corporate finance

• Financial institutions and markets

________ are the forums where buyers and sellers of financial assets and commodities meet.

• Housing markets

• Federal Reserve banks

• Financial markets

• Automotive shows

Financial assets that will mature within a year are bought and sold in the ________ market.

• debt

• capital

• stock

• money

The sale of "new" securities, where the financial asset is being traded for the very first time, is said to take place in the ________ market.

• primary

• money

• secondary

• capital

________ is NOT a main category of financial management.

• Capital budgeting

• Capital structure

• Accounts payable management

• Working capital management

________ addresses the question of what business a firm should be in over the long run.

• Capital budgeting

• Capital structure

• Working capital management

• Accounts receivable management