Finance Basics
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Questions and Answers

What is the main focus of finance?

  • Maximizing value and minimizing volatility (correct)
  • Production, distribution, and consumption of goods and services
  • Studying the early history of money
  • Exploring the scientific method

What can be bought, sold, or traded as financial instruments in a financial system?

  • Stocks, options, and futures
  • Goods and services
  • Currencies, loans, and bonds (correct)
  • Prehistoric artifacts

Which discipline bridges the study of economics and finance?

  • Financial economics (correct)
  • Mathematical finance
  • Financial law
  • Financial technology

What is the primary aim of financial analysis?

<p>Assessment of profitability (D)</p> Signup and view all the answers

Which field is multidisciplinary and serves as the foundation of business and accounting?

<p>Financial engineering (B)</p> Signup and view all the answers

What is the primary goal of asset, money, risk, and investment management in finance?

<p>Maximize value and minimize volatility (C)</p> Signup and view all the answers

What is the focus of financial analysis in finance?

<p>Viability, stability, and profitability assessment of an action or entity (D)</p> Signup and view all the answers

Which field serves as the foundation of business and accounting in finance?

<p>Financial economics (C)</p> Signup and view all the answers

What is the broad scope of financial activities in a financial system mainly related to?

<p>Buying, selling, or trading financial instruments (D)</p> Signup and view all the answers

What is the relationship between finance and economics?

<p>Financial economics bridges the two disciplines (A)</p> Signup and view all the answers

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