Answer True or False. Briefly explain the false ones 15. Currency and Banking is

Question

Answer True or False. Briefly explain the false ones 15. Currency and Banking is one of the specializations of Finance 16. Government regulations are always in opposition to for-profit organizations. 17. An excellent example of a recession is when our neighbor is unemployed. 18. The more competition between short-term businesses, the worse for the consumer regularly 19. A good way to deal with inflation is to contract with long-term suppliers. 20. Non-profit businesses do not need financing, therefore, from Finance 21. The financial statements are faithful and accurate reports of the fiscal and economic condition of the business

Explanation / Answer

1. True, but it's not currency, it is forex(foreign exchange management), banking are specialisations in finance. Others include equity, portfolio management, private equity etc.

2. False, government regulations are meant for the benefit of all and elimination of illegal or unethical activities. In general, regulations are against those businesses which involve unethical measures.

3. False, recession is the time when unemployment grows, gdp falls, economic output declines, inflation rises.

4. False, if there is more competition between short term businesses, customer generally gains. As no enterprise can be dominant and earn supernormal profits. There will be more teansparency, and entrepreneurs will strive to give the best quality at lowest rates.

5. True, when the rise in inflation is normal. We can tie up with long term suppliers and lock the rates for the raw materials. But in hyperinflationary environment this may not work.

6. False, NPO needs financing which they get through grants, donations etc. They can not issue equity.

7. False, the financial statements are measure of economic conditions of Business. Unfortunately, they are always not reliable or accurate. They suffer from conflicts of interest.

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