Financial Management - Study Mode
[#176] Condition in which company's imports are more than its exports is classified as
Correct Answer
(B) foreign trade deficits
Explanation
Solution: Condition in which company's imports are more than its exports is classified as foreign trade deficits. A trade deficit is an economic measure of international trade in which a country's imports exceed its exports. It represents an outflow of domestic currency to foreign markets.
[#177] A markets which deals with long-term corporate stocks are classified as
Correct Answer
(C) capital markets
Explanation
Solution: A markets which deals with long-term corporate stocks are classified as capital markets. Capital markets refer to the places where savings and investments are moved between suppliers of capital and those who are in need of capital.
[#178] Subset of primary market where firms go publicly by issuing stocks in financial markets is considered as
Correct Answer
(A) initial public offering market
Explanation
Solution: Subset of primary market where firms go publicly by issuing stocks in financial markets is considered as initial public offering market. An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors.
[#179] The available capital funds are to be carefully allocated among competing projects by careful prioritization. This is called ____________.
Correct Answer
(D) capital budgeting
Explanation
Solution: The available capital funds are to be carefully allocated among competing projects by careful prioritization. This is called capital budgeting. Capital budgeting is the process a business undertakes to evaluate potential major projects or investments.
[#180] Treasury bills are traded in the __________.
Correct Answer
(A) money market
Explanation
Solution: Treasury bills are traded in the money market. The money market is the trade in short-term debt investments. At the wholesale level, it involves large-volume trades between institutions and traders.