Finc 409 Ch. 1 Already Passed

Crucial elements of well-developed financial systems include all of the following except: a. government control of the economy b. financial intermediaries c. financial markets d. all of the above {Ans: a. government control of the economy}_________ provide the record-keeping mechanism for showing ownership of the financial instruments used in the flow of financial funds between savers and borrowers and record revenues, expenses, and profitability or organizations that produce and exchange good and services. a. Financial Managers b. Accountants c. Operations Managers d. Statisticians e. None of the above {Ans: b. Accountants}T or F The principle of finance that "lower returns are expected for taking on less risk" implies that rational investors would choose a risky investment only if they feel the expected return is high enough to justify the greater risk {Ans: True}The six principles of finance include all of the following except a. money has a time value b. higher returns are expected for taking on more risk c. diversification of investments can reduce risk d. financial markets are efficient in pricing securities e. all of the above {Ans: e. all of the above}Crucial elements of the tree areas of finance include: a. financial institutions