1. To achieve the goal of profit maximization for each alternative being considered, the financial manager would select the one that is expected to result in the highest monetary return.

2. Dividend payments change directly with changes in earnings per share.

3. The wealth of corporate owners is measured by the share price of the stock.

4. Financial markets are intermediaries that channel the savings of individuals, businesses, and government into loans or investments

5. The money market involves trading of securities with maturities of one year or less while the capital market involves the buying and selling of securities with maturities of more than one year.

6. Primary and secondary markets are markets for short-term and long-term securities, respectively.

7. Holders of equity have claims on both income and assets that are secondary to the claims of creditors.

8.Preferred stock is a special form of stock having a fixed periodic dividend that must be paid prior to payment of any interest to outstanding bonds

9. Commercial banks obtain most of their funds from borrowing in the capital markets.

10. Credit unions are the largest type of financial intermediary handling individual savings.

11.A mutual fund is a type of financial intermediary that obtains funds through the sale of shares and uses the proceeds to acquire bonds and stocks issued by various business and governmental units.

12. IPO stands for Interest and Principal Obligation

13. Suppliers of funds or the holders of the securities may decide to sell the securities that have previously been purchased through secondary markets

14. Money markets are venues  where temporarily idle funds are invested and likewise temporary financing can be acquired

15. Holders of preferred stocks are given priorities over common stocks  in terms of claims over the assets of a company.

16.A ______ is one financial intermediary handling individual savings. It receives premium payments that are placed in loans or investments to accumulate funds to cover future benefits

17. The key participants in financial transactions are individuals, businesses, and governments. Individuals are net ______ of funds, and businesses are net ______ of funds. A. suppliers; users B. purchasers;

18.Which of the following is not a financial institution?

19. A ______ is set up so that employees of corporations or governments can receive income after retirement.

20.A ______ is a type of financial intermediary that pools savings of individuals and makes them available to business and government users. Funds are obtained through the sale of shares.

21.Most businesses raise money by selling their securities in a.

22.Which of the following is not a service provided by financial institutions?

23.Government usually

24.By definition, the money market involves the buying and selling of

25. The ______ is created by a financial relationship between suppliers and users of short-term funds.

26.Firms that require funds from external sources can obtain them from

27. The major securities traded in the capital markets are

28. Long-term debt instruments used by both government and business are known as

29. Deposited funds in this institution  provides commercial loans to firms and personal loans to individuals including purchase of  debt securities issued by firms or government agencies

30. Securities with long -term maturities are sold in this platform