Banking And Finance Test |15 Questions| With Correct Answers.

What is the overall objective of a business raising financial capital? {Ans: grow and increase profit}Which of the following are financial assets? {Ans: 1) stocks 2) bonds}Determine whether each of the following is direct financing or indirect financing. {Ans: taking out a loan at a commercial bank) Indirect selling stock on the stock market) Direct investing in a mutual fund) Indirect selling bonds on the capital market) Direct}The financial markets play an important role in channeling funds from savers to borrowers. Which of the following illustrates this function of financial markets? {Ans: Investors purchase securities that are issued by firms and governments.}In a less-developed economy, cattle is widely accepted as payment for goods and services. Nearly all goods and services are priced in terms of cattle; however, cows vary in quality, become less valuable with age, and are difficult to move over long distances. Which of the following functions of money do cattle provide? {Ans: 1) medium of exchange 2) unit of account}A bond is sold at a face value of $200 with an annual yield of 3%. How much will the bondholder have received in payment from the bond issuer after the bond has