Which of the following is not a benefit of a savings account? A. A way to achieve short-term savings goals B. Build funds for large, irregular expenses C. Protection against inflation D. A way to save for your child's education | Homework.Study.com (2024)

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• Which of the following is true with regard to budgeting versus long-range planning? a. Budgeting is oriented more toward short-term goals, with long-range planning more toward long-term goals. b. The maximum length for both usually is a year, with shorter
• Which of the following is an objective of capital budgeting? (a) To eliminate all risk. (b) To discount all future and past cash flows. (c) To earn a satisfactory return on investment. (d) To reverse past decisions. (e) To reduce the number of investment
• Which of the following is not an advantage of inflation targeting? A) There is simplicity and clarity of the target. B) Inflation targeting does not rely on a stable money-inflation relationship. C) There is an immediate signal on the achievement of th
• Which of the following is an advantage to money targeting? A) There is an immediate signal on the achievement of the target. B) It does not rely on a stable money-inflation relationship. C) It implies lack of transparency. D) It implies smaller output
• Which of the following is not one of the main goals of monetary policy? a. Controlling inflation. b. Smoothing out the business cycle. c. Ensuring financial stability. d. Balancing the federal budget.
• Because of the kiddie tax, which of the following types of investments should be relied upon to fund a trust for the education of a young beneficiary? A. Investments that emphasize high levels of current income if the beneficiary is under the age of 19 (
• You are saving for the future college education of your two children. They are two years apart in age; one will begin college 15 years from today and the other will begin 17 years from today. You esti
• What is the purpose of a petty cash fund? How does it operate? What types of controls should be in place to safeguard these funds?
• Which of the following is not a disadvantage to inflation targeting? A) There is a delayed signal about achievement of the target. B) Inflation targets could impose a rigid rule on policymakers. C) There is potential for larger output fluctuations. D)
• The term "opportunity cost" is best defined as: a. the amount of money paid for an item, taking possible discounts into account. b. the amount of money paid for an item, taking inflation into account. c. an irrelevant decision factor. d. the benefit assoc
• Which of the following is a disadvantage to monetary targeting? A) It relies on a stable money-inflation relationship. B) There is a delayed signal about the achievement of a target. C) It implies larger output fluctuations. D) It implies a lack of tr
• Which of the following is not true about budgeting? a) It is a formal method of detailed financial planning. b) It is used to help a company reach long-term and short-term objectives. c) It aids in the efficient use of resources. d) All of the above a
• Which of the following is not a benefit derived from budgeting? a) The budget fund provides assurance that cash will be available to meet budgeted expenditures. b) The budget may provide advance warning of future economic problems. c) The budget provide
• Suppose that your strategic plan is to retire comfortably at the age of 55. List several long-term objectives, short-term objectives, and tactics that would enable you to accomplish this goal.
• The balanced scorecard is said to be "balanced" because it measures _______. (a) short-term and long-term objectives (b) financial and non-financial objectives (c) internal and external objectives (d) All of the above are correct.
• The use of a Roth IRA versus a traditional IRA will allow you to __________. a. retire with less money in your savings account. b. select more sophisticated investments. c. avoid relying as much upon social security. d. protect your spouse from a decl
• How does long term goal planning affect budget decisions? Why? Give an example where a long term goal affected a budget decision.
• Inflation targets can increase the central bank's flexibility in responding to declines in aggregate spending. Declines in aggregate ________ that cause the inflation rate to fall below the floor of the target range will automatically stimulate the centra
• Which of the following is an advantage of the Fed's "just do it" approach to monetary policy? A) It does not rely on the money-inflation relationship. B) It is simplistic and has clarity. C) There is increased accountability of central bankers. D) The
• What is the primary goal of accounting? (a) To set long-term goals and objectives. (b) To arrange for the necessary resources to achieve a plan. (c) To provide information for decision making. (d) T
• Which of the following statements is true regarding the leverage of supply chain savings? a. supply chain leverage is about the same for all industries b. supply chain savings exert more leverage as the firm's purchases are a smaller percent of sales c. s
• Trusts have a variety of purposes, ranging from asset protection to providing financial support to a minor or a mentally incapacitated individual. Trusts also have significant tax planning advantages.
• Review the following incomplete statements regarding the advantages of budgeting. a. The budgeting process forces management to focus on the _____ and not be distracted by daily crises in the organiz
• Capital budgeting decisions are risky because: a. the outcome is uncertain. b. large amounts of money are usually involved. c. the investment involves a long-term commitment. d. the decision could be difficult or impossible to reverse. e. All of thes
• Which of the following is not an element of inflation targeting? A) A public announcement of medium-term numerical targets for inflation B) An institutional commitment to price stability as the primary long-run goal C) An information-inclusive approach
• If the desired intermediate target is a monetary aggregate, which of the following would be the most preferred policy instrument? A) The federal funds rate B) The 90-day T-bill rate C) The 180-day T-bill rate D) The monetary base
• For the following event, determine the appropriate expenditure classification: Borrowing money with a short-term note. Choose from the following classifications of expenditures for governmental funds: | Expenditures - Operating | Expenditures - Intergo
• Misalignment between stressed un budget and used to reward employees and managers can limit the advantages of budgeting a) sales goal bonus b) performance goals, performance measures c) performance goals, participative goal d) resource goal bonuses
• Budgeting and long-range planning are both important aids to management in achieving a company's goals and objectives. (a) Briefly distinguish between budgeting and long-range planning. (b) How they help managers perform their functions?
• Many of us apply the time value of money in our personal lives; for example, when we invest dollars in a young child's bank account earmarked for his or her eventual college education. Share an explanation of the time value of money. What criteria can acc
• Select the underlying rationale for the following tax credit items. 1. This credit is designed to reduce the financial burdens associated with raising children. 2. Theis credit is an incentive to encourage energy conservation measures and the use of fuel
• Which of the following is included in both M1 and M2? A) Currency B) Savings deposits C) Small-denomination time deposits D) Money market deposit accounts
• Precautionary cash balances: A. are invested in insurance policies by people who are highly risk-averse. B. were emphasized by classical writers on monetary theory. C. are intended primarily for unexpected expenditures. D. grow when individuals acquir
• The decision by inflation targeters to choose inflation targets ________ zero reflects the concern of monetary policymakers that particularly ________ inflation can have substantial negative effects on real economic activity. A) below; high B) below; lo
• For the following event, determine the appropriate expenditure classification: Repayment of a short-term note. Choose from the following classifications of expenditures for governmental funds: | Expenditures - Operating | Expenditures - Intergovernment
• The case for Federal Reserve independence does not include the idea that: A) political pressure would impart an inflationary bias to monetary policy. B) a politically insulated Fed would be more concerned with long-run objectives and thus be a defender
• Which of the following is not a characteristic of a non-compensatory stock purchase plan? (a) It is open to almost all full-time employees (b) The discount from market price is small (c) The plan offers no substantive option feature (d) All of the above.
• Spending $1,500 more today for a hybrid engine rather than a conventional gasoline engine will result in annual fuel savings of $300. How many years must these savings continue in order to justify the
• Below is a table of disposable income (DI), consumption (C), and savings (S) data for the country of Cornucopia. Use the numerical tabs below to complete the table. Disposable Income ($) Consumption
• Which of the following is not an advantage of a perpetual budget? a. It keeps management involved in the budget process. b. It forces management to maintain a constant focus on the company's goals and objectives. c. Both "a" and "b" are correct d. "a"
• Trusts have a variety of purposes, ranging from asset protection to providing financial support to a minor or a mentally incapacitated individual. Trusts also have significant tax planning advantages. 1. What flexibility does a simple trust offer that ot
• The most common type of discount lending, ________ credit loans, are intended to help healthy banks with short-term liquidity problems that often result from temporary deposit outflows. a) secondary b) primary c) temporary d) seasonal
• During tight money periods: A. long-term rates are higher than short-term rates. B. short-term rates are higher than long-term rates. C. short-term rates are equal to long-term rates. D. the relationship between short-term and long-term rates remains unch
• For the following event, determine the appropriate expenditure classification: Year-end accrual of interest on short-term note. Choose from the following classifications of expenditures for governmental funds: | Expenditures - Operating | Expenditures
• An example of economies of scale in the provision of financial services is? A) investing in a diversified collection of assets. B) providing depositors with a variety of savings certificates. C) spreading the cost of borrowed funds over many customers.
• Regarding the make or buy decision, which of the following is false? a. Certain items can be listed as costs under the make alternative or as savings under the buy alternative. b. Opportunities to use freed up resources under the buy alternative must be
• One disadvantage of the payback period is that: a. it is sometimes used as a crude measure of risk. b. managers may choose investments with quick payback periods to maximize short-term criteria on which their own bonuses, etc. may be based. c. it canno
• Misalignment between -blank- stress in budgets and -blank- used to reward employees and managers can limit the advantages of budgeting A) Sales goals bonuses B) Performance goals: performance measur
• If you were in charge of macroeconomic policies in a small open economy, what qualitative effect would each of the following events have on your target for external balance? a. Large deposits of urani
• For the following event, determine the appropriate expenditure classification: Interest on short-term debt. Choose from the following classifications of expenditures for governmental funds: | Expenditures - Operating | Expenditures - Intergovernmental
• Banks, savings and loan associations, mutual savings banks, and credit unions: A) are no longer important players in financial intermediation. B) since deregulation now provide services only to small depositors. C) have been adept at innovating in respons
• If a saver had $12,540 to invest for a short period of time, what alternatives would be available?
• The type of monetary policy regime that the Federal Reserve has been following in recent years can best be described as: A) monetary targeting. B) inflation targeting. C) policy with an implicit nominal anchor. D) exchange-rate targeting.
• An alternative method of projecting a firm's future financial needs (such as bank loans) involves creation of a pro forma cash budget. 1. Would you consider a cash budget to be more appropriate for short-term or long-term projections? Why? 2. How do mon
• Which of the following is not a cash equivalent? Select one: A. Short term U.S. Treasury bill B. IBM common stock C. Short term certificate of deposit D. Money market account
• Which of the following is true with regard to budgeting vs. long-range planning? 1. They are the same in all significant aspects. 2. Both tend to be very detailed. 3. The maximum length for both usu
• The critics of accounting profits make a distinction between long-term value (which they consider to be 'good') and short-term results (which they consider to be 'bad'). But what is long-term value without strong short-term results piled upon each other?
• Padding a budget __________________________________. (Points : 1) A is a smart use of company funds by a manager B does little to advance organizational efficiency C may induce wasteful spending D is
• One factor contributing to the decline in cost advantages that banks once had is the: A) decline in the importance of checkable deposits from over 60 percent of banks' liabilities to under 10 percent today. B) decline in the importance of savings deposit
• Generally, the current and deferred types of bonus payment options currently in use tend to focus the manager's attention on short-term performance measures, most commonly: a. division profit b. after-tax corporate profit c. cash flow d. growth in firm va
• One of the factors that contributed to the success German policymakers had using a monetary targeting type policy was that: A) they used a rigid target for the money growth rate. B) they implemented policy so their inflation rate goal was met in the shor
• Financial markets promote economic efficiency by: A) channeling funds from investors to savers. B) creating inflation. C) channeling funds from savers to investors. D) reducing investment.
• Assess the scorecard in diminishing and overcoming myopic behavior (an over-focus on a short-term financial (objective) performance measure to the detriment of non-financial goals and initiatives in t
• Which of the following is not one of the four objectives of an internal control system? 1. Safeguard assets. 2. Promote the achievement of a target EPS. 3. Promote operational efficiency. 4. Encourage employees to follow managerial policies.
• The stock option form of bonus payments to managers usually: a. motivates well even in extended market downturns. b. can lose some motivation because of the delay in reward. c. focuses on the short-term. d. is not consistent with shareholder interests. e.
• The stock option form of bonus payments to managers usually: a. Motivates well even in extended market downturns. b. Can lose some motivation because of the delay in reward. c. Focuses on the short-term. d. Is not consistent with shareholder interests.
• Because economic and competitive environments frequently change, organizations should: 1. set a long-term plan and stick to it. 2. develop contingency plans. 3. save time and money by cutting back on planning. 4. eliminate any long-term strategic plans, b
• For the following event, determine the appropriate expenditure classification: Year-end accrual of interest on long-term debt. Choose from the following classifications of expenditures for governmental funds: | Expenditures - Operating | Expenditures -
• Share-based compensation plans are meant to provide staff with a) long-term performance incentives. b) short-term performance incentives. c) immediate cash compensation. d) none of these.
• Because of their ________ liquidity, ________ U.S. government securities are called secondary reserves. A) low; short-term B) low; long-term C) high; short-term D) high; long-term
• For the following event, determine the appropriate expenditure classification: Compensated absences earned in the current year but to be paid in future years. Choose from the following classifications of expenditures for governmental funds: | Expenditu
• ________ mean(s) that the organization will attempt to reach much higher goals with the current budget. a. Traditional budgeting b. Stretch goals c. The beyond budgeting approach d. Budget slack
• Which of the following is not true regarding the adoption of a budget? a. promotes efficiency b. is a deterrent to waste c. is a basis for performance evaluation d. guarantees accomplishing the profit objective
• Identify each of the following as a mission, goal, or strategy. a. Budget time for study, sleep, and relaxation. b. Provide shelter for homeless. c. Provide an above-average return to investors. d. Protect the public. e. Locate first stations so that the
• For the following event, determine the appropriate expenditure classification: Issuing long-term debt. Choose from the following classifications of expenditures for governmental funds: | Expenditures - Operating | Expenditures - Intergovernmental | Ex
• Which of the following describes the time value of money? a. Money loses it purchasing power over time through inflation. b. A dollar received today is worth more than a dollar to be received in the future. c. The time value of money has no effect on the
• Most economists believe that classical macroeconomic theory is a good description of the economy: A. in neither the short nor long run. B. in the short run and in the long run. C. in the short run, but not in the long run. D. in the long run, but not i
• The most important advantage of discount policy is that the Fed can use it to: A) precisely control the monetary base. B) perform its role as lender of last resort. C) control the money supply. D) punish banks that have deficient reserves.
• Advantages of participative budgeting include all of the following except ________. A. budget estimates are prepared by those directly involved in the activities. B. claims that the budget was unrealistic and impossible to meet cannot be made. C. indiv
• Moral hazard and adverse selection problems increased in prominence in the 1980s \\ A) as deregulation required savings and loans and mutual savings banks to be more cautious. B) following a burst of financial innovation in the 1970s and early 1980s tha
• Not-for-profit, common-bond financial institutions that are owned by their members are called: A. credit bureaus. B. mutual savings banks. C. savings banks. D. credit unions.
• Folmar Co. is considering the following alternative financing plans: Plan 1Plan 2 Issue 10% bonds (at face value)$1,720,000$860,000 Issue preferred $1 stock, $10 par?1,430,000 Issue common stock, $5 p
• Dharma Initiative, Inc., has a defined benefit pension plan. Characteristics of the plan during 2016 are as follows: The expected long-term rate of return on plan assets was 8%. There were no AOCI ba
• Contractual savings institutions include: A) mutual savings banks. B) money market mutual funds. C) commercial banks. D) life insurance companies.
• What does it mean by "negotiate low targets to reach maximum benefits" in conventional budgeting?
• Folmar Co. is considering the following alternative financing plans: Plan 1Plan 2 Issue 10% bonds (at face value)$1,880,000$940,000 Issue preferred $1 stock, $10 par-1,560,000 Issue common stock
• Folmar Co. is considering the following alternative financing plans: Plan 1Plan 2 Issue 10% bonds (at face value)$1,280,000640,000 Issue preferred $1 stock, $10 par-1,060,000 Issue common stock,
• Which of the following investments below should be accounted for using the cost method? (a) Temporary investments in stocks (b) Long-term investments in stock where the investor does not have a significant influence over the investee (c) Long-term investm
• Countries that experience very high rates of inflation may also have: A) balanced budgets. B) rapidly growing money supplies. C) falling money supplies. D) constant money supplies.
• Which of the following are not assumptions of classical economic theory? a. Flexible interest rates allow self-correcting equilibrium of savings and investing. b. Flexible prices allow self-correcting of shortages and surpluses in product markets. c. Full
• 1. Which of the following is the starting point of the master budget? A.The fuss budget B.The financial budget C.The capital budget D.The operating budget 2. Which of the following is part of t
• Which of the following would increase your liquid assets? a. Putting more of your salary in a 401(k) b. Buying a new car c. Buying rental property d. Making regular deposits to a savings account at your bank
• Which of the following statements are true if optimum benefit is to be derived from the budget process? (a) Employees participate in the development of the budget. (b) Targets should include slack to enable easy achievement. (c) Rewards are not required.
• A high ratio of number of times interest charges are earned indicates: a. protection in the event of an earnings decline. b. extremely good protection in the event of an earnings decline. c. nothing
• The goals of bank asset management include: A) maximizing risk. B) minimizing liquidity. C) lending at high-interest rates regardless of risk. D) purchasing securities with high returns and low risk.
• Write a short summary (300-400 words), on some of the risks regarding capital budgeting in your organization. Also, discuss some of the risk mitigation that can occur in the area of the safeguarding of capital assets and also intangibles. Use citations wh
• Which of the following are not contractual savings institutions? A) Life insurance companies B) Credit unions C) Pension funds D) State and local government retirement funds
• The business term for economies of scope is: A) economies of scale. B) diversification. C) cooperation. D) synergies.
• In finance the primary goal of management is to: a. utilize its economic resources in the most advantageous way b. minimize all possible expenses c. maximize shareholder wealth which is generally achieved by maximizing stock price d. make the best use