multiple choice finance the claims from irm\'s croditors intervention from the g

Question

multiple choice finance

the claims from irm's croditors intervention from the govenmentC potential takeover by its competitors S. Within the finanicial department, which department is responsible for oversceing the accounting and suditing activities of the firm A Controller BTreasurer C. Marketing D. VP Financial Planning 9 Referring to the flow of funds diagram above, which of the following DOES NOT involve the use of the that is deposited in a bank is used to make loan to business companies B an investor purchases a ten year Treasury bond from the govenment without the help of a middleman. C. investors directly purchase shares issued by a firm without using a broker D a speculator purchases wheat futures directly from the Chicago Mercantile Exchange to speculate on the price of wheat 10. Which of the following reason is NOT the reason behind a financial institution role to enable pooling of resources and subdividing shares? The minimum investment require to run a business is often beyond the means of an individual family B Deal with the problem of moral hazard that increases the loss of an insurance company. C. Enables subdividing shares in the investment without having to physically divide the company. D. A household can now afford to own a small part of a large company 1I. In insurance, when an insured party takes greater risk or takes less care in preventing the event that give rise to the loss, this incentive problem is described as A. Adverse selection B. Invisible hand Moral hazard D. Principal-agent problem 12. Long-term debt are traded in the Capital market A. Bartering market Money market D. Over the counter market

Explanation / Answer

12- B- Capitam market - capitam market is the market where long term debt or instruments for long term maturity are issued and traded

11-C Moral hazard because this lead to unwillingness on the part of insurance companies to ensure against certain types of risk

10-B- this reason is not related to the statement

9-A- money that is deposited in a bank is used to make loans to business companies

8- A controller - look after the accounting and auditing activities

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