Question 1

Which of the following terms refer to the recurring and fluctuating levels of economic activity that an economy experiences over a long period of time?

Options :

A : Claims cycle

B : Reaction cycle

C : Business cycle

D : Capital cycle

Answer: C

Question 2

When one buys a cash instrument, for example 100 shares of ABC Inc., the payoff is linear(disregarding the impact of dividends). If share are purchased at $50 and the price appreciated to $75, we have ________ on a mark-to-mark basis.

Options :

A : Made $2500

B : Lost $2500

C : Made $2500

D : None of these

Answer: A

Question 3

It is a mortgage on personal property given as a security for the payment of an obligation.

Options :

A : Chattel mortgage

B : Lien

C : Collateral note

D : Loan application

Answer: A

Question 4

If the following are balance sheet changes: $5,005 decrease in accounts receivable $7,000 decrease in cash $12,012 decrease in notes payable $10,001 increase in accounts payablea "use" of funds would be the:

Options :

A : $7,000 decrease in cash

B : $5,005 decrease in accounts receivable

C : $10,001 increase in accounts payable

D : . $12,012 decrease in notes payable

Answer: D

Question 5

Financial plans that are more than five years off are called?

Options :

A : Opportunity plans

B : Long-term goals

C : Intermediate goals

D : Attainable goals

Answer: B

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