FINANCE SKILLS FOR MANAGERS D076 STUDY QUESTIONS WITH CORRECT ANSWERS GUARANTEED PASS | RATED A+
Steady State Growth - Answer>>> The level of growth where four key financial ratiosprofitability, asset utilization, leverage, and payout - are constant and where the firm does need
to issue any new equity to fund the growth.
Credit Analysts - Answer>>> A commercial bank position with the responsibility to assess the
riskiness of lending to borrowers and determining whether or not loans should be extended to
potential bank clients.
Stock - Answer>>> A share of ownership in a company
Sunk Costs - Answer>>> A cost that has already been incurred and cannot be recovered
The Federal Reserve sometimes adjusts the interest rate at which commercial banks can borrow
from it. What is the purpose of adjusting the interest rate? - Answer>>> To regulate inflation and
unemployment
What would an inverted yield curve signal? - Answer>>> It may indicate an economic downturn.
In what way are coincident indicators useful? - Answer>>> They are analyzed during economic
shifts to provide information about the current state of the economy.
Sustainable Growth Rate (SGR) - Answer>>> The growth rate that allows a firm to maintain its
presents financial ratios without issuing new equity
About a year ago, the short-term Treasury bill had 1.54% interest and the long-term Treasury
note had 2.54% interest. This week, the 1-year Treasury bill has an interest rate of 3.13%, while
the 10-year Treasury note has an interest rate of 2.28%. What does this information indicate
about the future economy? - Answer>>> It may indicate an economic downturn.
Which term reflects a person's beliefs about right and wrong, good and bad, or just and unjust? -
Answer>>> Moral
What characterizes an ethical action? - Answer>>> An ethical action is based on accepted
standards of conduct