Chapter 17: Financial Management and Banking
Multiple Choice

1.  

Which of the following can be found on the Quicken.com Web site?
Intuit's software products
Bank and mortgage lenders' services
Insurance products and services
All of the above

2.  

Which of the following is the job of financial management?
Developing and implementing a financial plan
Monitoring cash flow, and overseeing how excess funds are created and used
Developing future growth financing
All of the above

3.  

Which of the following questions is NOT involved in financial planning?
Is technology harming the industry?
Is the company introducing a new product in the near future?
Is the industry growing?
Is the national economy declining?

4.  

Working capital accounts include ...
inventory.
accounts receivable and payable.
cash.
all of the above.

5.  

Managing capital accounts does NOT involve ...
shrinking accounts receivable collection periods.
dispatching bills on a time-sensitive basis.
investing excess cash.
securing excess inventory.

6.  

Which of the following does NOT influence financial managers' decisions about the volume of receivables?
Credit qualifications
Net earnings
Length of time customers have to pay their bills
Company's level of aggressiveness in collecting debts

7.  

The average rate of interest for debt and equity financing depends on ...
the risk associated with the company.
prevailing interest rates.
management's selection of funding sources.
all of the above.

8.  

Most lenders insist on a compensating balance on deposit during the life of ...
a short-term loan.
a long-term loan.
an unsecured loan.
all of the above.

9.  

Which of the following is NOT a deposit institution?
Commercial banks operating under state or national charters
Thrifts, savings and loan associations, mutual savings banks
Insurance companies
Credit unions

10.  

Transfers of funds from the user's demand-deposit account to a retailer's account are a function of ...
credit cards.
debit cards.
smart cards.
checks.

11.  

Credit card readers are used ...
by retailers to secure payment by credit card.
to steal information with the intent to commit fraud.
to steal and encode validation codes, and create counterfeit cards.
all of the above.

12.  

Electronic funds transfer systems permit ...
direct deposit of wages to employees' bank accounts.
remote, instant bill payment.
remote loan applications.
all of the above.

13.  

What was responsible for the large number of mergers, acquisitions, and takeovers in the banking industry in the 1980s and 1990s?
The repeal of the Glass-Steagall Act
Banks were seeking strength, efficiency and access to more customers and markets.
Heavy investments in real estate and oil
All of the above

14.  

Which of the following is NOT cited as a chief benefit of banking industry consolidation?
Improved operating efficiencies
Integrated financial services
Customized services
None of the above

15.  

The overall health of the U.S. banking system is the responsibility of ...
the Office of Thrift Supervision.
the federal Office of the Comptroller of Currency.
the FDIC.
the Federal Reserve System.


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