Financial Management - Study Mode
[#551] Financial markets include
Correct Answer
(D) all of above
Explanation
Solution: Financial markets include primary markets, capital markets and physical asset markets.
[#552] Funds which are used as an interest-bearing checking accounts are classified as
Correct Answer
(A) money market funds
Explanation
Solution: Funds which are used as an interest-bearing checking accounts are classified as money market funds. A money market fund is a kind of mutual fund that invests only in highly liquid instruments such as cash, cash equivalent securities, and high credit rating debt-based securities with a short-term, maturity—less than 13 months.
[#553] Physical location exchange or telephone networks are types of
Correct Answer
(B) secondary markets
Explanation
Solution: Physical location exchange or telephone networks are types of secondary markets. The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.
[#554] Method of matching orders by posting orders of buying and selling is classified as
Correct Answer
(A) electronic communication network
Explanation
Solution: Method of matching orders by posting orders of buying and selling is classified as electronic communication network. An electronic communication network (ECN) is a computerized system that automatically matches buy and sell orders for securities in the market.
[#555] An earning of business which is available for free distribution to all stockholders and creditors is classified as
Correct Answer
(A) free cash flows
Explanation
Solution: An earning of business which is available for free distribution to all stockholders and creditors is classified as free cash flows. Free cash flow represents the cash a company generates after cash outflows to support operations and maintain its capital assets.