【正文】 capital market securities have maturities ________. a. less than 18 months, greater than 18 months b. one year or less, greater than one y。s 500 Stock Price Index is a ____ index. a. price weighted b. market value weighted c. price average d. none of these answers is correct ANS: B OBJ: TYPE: Fact TOP: Stock Market Indexes 18. Securities not listed on exchanges are said to be traded a. on the AMEX b. as posite transactions c. over the counter d. on the regional exchanges ANS: C OBJ: TYPE: Fact TOP: Security exchanges and stock market indexes 19. Financial intermediaries include a. securities brokers b. mercial banks c. securities dealers d. all of the above ANS: B OBJ: TYPE: Fact TOP: An overview of the . financial system 20. _______ markets deal in longterm securities having maturities greater than one year. a. Credit b. Money c. Commodity futures d. Capital ANS: D OBJ: TYPE: Fact TOP: Money and capital markets 21. ______ markets deal in shortterm securities having maturities of one year or less. a. Credit b. Money c. Capital d. Capital and credit ANS: B OBJ: TYPE: Fact TOP: Money and capital markets 22. Which of the following (if any) are not financial intermediaries? a. mercial bank b. thrift institution c. securities broker d. all are financial intermediaries ANS: C OBJ: TYPE: Fact TOP: An overview of the . financial system 23. In the ________ market, the firm receives the proceeds from the sale of its securities. a. overthecounter b. secondary c. fully integrated d. primary ANS: D OBJ: TYPE: Fact TOP: Primary and secondary markets 24. A savings and loan association is an example of which type of financial intermediary? a. mercial bank b. investment pany c. finance pany d. thrift institution ANS: D OBJ: TYPE: Fact TOP: Thrift institutions 25. In any economy as a whole, the actual savings for a given period of time must ________ the actual investments. a. be greater than b. be unrelated to c. equal d. be less than ANS: C OBJ: TYPE: Fact TOP: An overview of the financial system 26. Financial intermediaries a. issue secondary claims to the lender b. are pensated for their services by fixed fees c. include both brokers and dealers d. issue primary claims to the lender ANS: A OBJ: TYPE: Fact TOP: An overview of the finance system 27. The main purpose of an economy39。 cash flows ______ subject to shortterm manipulation. a. are, are not b. are not, are c. are, are also d. are not, also are not ANS: A OBJ: TYPE: Fact TOP: Cash flows and shareholder wealth 45. The present value rule provides appropriate guidance for financial decision makers when costs are incurred immediately but a. future cash flows are not known with certainty b. marginal costs are equal to marginal revenue c. result in a stream of benefits over several future time periods d. marginal costs are greater then marginal revenue ANS: C OBJ: TYPE: Fact TOP: Net present value rule 46. Corporate officers normally include all the following except: a. Secretary b. Chief operating officer c. Treasurer d. Financial analyst ANS: D OBJ: TYPE: Fact TOP: Corporate anization 47. The difference between a firm39。s shares of stock include the __________ . a. risk of its cash flows b. timing of its cash flows c. book value of its assets d. risk of its cash flows and the timing of its cash flows ANS: D OBJ: TYPE: Fact TOP: Determinants of value 35. There is often a divergence between the shareholder wealth maximization goal and the actual goals pursued by management. The primary reason for this is __________. a. geographical dispersion of shareholders b. separation of ownership and control c. age differences between managers and shareholders d. that both have their own agendas ANS: B OBJ: TYPE: Fact TOP: Divergent objectives 36. The existence of divergent objectives between owners and managers is one example of a class of problems arising from __________. a. social responsibility concerns b. age differences between managers and owners c. agency relationships d. unionmanagement relations ANS: C OBJ: TYPE: Fact TOP: Agency problems 37. The activities of the treasurer include all of the following except: a. financial planning b. tax preparation c. credit analysis d. pension fund management ANS: B OBJ: TYPE: Fact TOP: Organization of the financial management function 38. The most important managerial objective is to: a. make MC=MR b. maximize profits c. minimize agency costs d. none of the above ANS: D OBJ: TYPE: Fact TOP: A foundation concept 39. _______ are important because the financial health of a firm depends on the firm being able to generate sufficient cash to pay its creditors, employees, suppliers, and owners. a. cash sales b. cash flows c. cash profits d. profits ANS: B OBJ: TYPE: Fact TOP: A foundation concept 40. One method of decreasing the cash outflows of a firm is to a. decrease depreciation b. increase capital expenditures c. decrease dividends d. increase debt repayment ANS: C OBJ: TYPE: Fact TOP: Cash flow 41. If a firm shows an accounting ine, then a. it will not have a cash flow problem b. it will not have a problem obtaining a bank loan c. it will be able to repay all current liabilities on time d. none of the above ANS: D OBJ: TYPE: Fact TOP: Cash flow 42. Cash flow concepts are _____ but generally accepted accounting principles are ______ in the determination of a firm39。s assets ANS: B OBJ: TYPE: Fact TOP: Determinants of value 29. Among the most important agency relationships in the context of finance is (are) the re