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Questions and Answers
What is the primary difference between finance and economics?
What is the primary difference between finance and economics?
- Finance involves individual, corporate, and public financial activities, while economics is limited to personal finance.
- Finance is concerned with assets, while economics is concerned with liabilities.
- Finance focuses on money, currency, and capital assets, while economics focuses on production, distribution, and consumption of goods and services. (correct)
- Finance is only related to currency, while economics is related to the study of financial systems.
What is the purpose of financial analysis?
What is the purpose of financial analysis?
- To focus solely on investment management.
- To assess the viability, stability, and profitability of an action. (correct)
- To eliminate risks in financial actions.
- To maximize volatility and minimize value.
What are some examples of financial instruments?
What are some examples of financial instruments?
- Machinery, equipment, and technology.
- Currencies, loans, bonds, shares, stocks, options, and futures. (correct)
- Real estate, commodities, and artwork.
- Labor, land, and raw materials.
What is the primary goal of asset, money, risk, and investment management?
What is the primary goal of asset, money, risk, and investment management?
What is the role of financial systems in financial activities?
What is the role of financial systems in financial activities?
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