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US CMA Part 2 Financial Management and Securities Markets — practice questions

Explore 75 free Financial Management and Securities Markets questions in US CMA Part 2 Financial Management. Open each question or exercise to read its content, reference answers and available explanation.

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Financial Management and Securities Markets questions and exercises with answers

Showing questions 1–30 of 75.

Sort each source into debt or equityRead the answer and worked solution →Match each market term to its meaningRead the answer and worked solution →Pick the right short-term fundingRead the answer and worked solution →Flip and match the finance basicsRead the answer and worked solution →Tap the odd one outRead the answer and worked solution →Judge each financing claimRead the answer and worked solution →Fill in the bond vocabularyRead the answer and worked solution →Pick the larger of the twoRead the answer and worked solution →Tap every chip that fitsRead the answer and worked solution →Split primary from secondary marketRead the answer and worked solution →Fix the wrong word in each lineRead the answer and worked solution →What are the three key activities of the financial manager?Read the answer and worked solution →What is the main goal of the financial manager?Read the answer and worked solution →How is the value of a publicly owned corporation measured?Read the answer and worked solution →Why is maximizing profits an inadequate goal on its own?Read the answer and worked solution →What does the risk-return trade-off hold?Read the answer and worked solution →Cash management means making sure of what?Read the answer and worked solution →Commercial paper is which kind of instrument?Read the answer and worked solution →For the average manufacturing firm, accounts receivable are about what share of total assets?Read the answer and worked solution →Production, marketing and finance managers disagree about inventory. What does the financial manager want?Read the answer and worked solution →What makes a spending item a capital expenditure?Read the answer and worked solution →Which process does a financial manager use to analyze long-term projects and pick the best ones?Read the answer and worked solution →What separates a short-term loan from a long-term loan?Read the answer and worked solution →On what basis is an unsecured loan granted?Read the answer and worked solution →What are the three main types of unsecured short-term loans?Read the answer and worked solution →A supplier delivers goods and bills the buyer for payment later. How does the buyer record that credit?Read the answer and worked solution →How does a revolving credit agreement differ from an ordinary line of credit?Read the answer and worked solution →In what denominations and for what periods do corporations issue commercial paper?Read the answer and worked solution →Why do many big companies use commercial paper rather than short-term bank loans?Read the answer and worked solution →What is typically pledged as collateral for a secured short-term loan?Read the answer and worked solution →

Worked practice questions

Sort each source into debt or equity

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Left
Debt
Items
  1. Item
    Term loan
    Answer
    Debt
  2. Item
    Common stock
    Answer
    Equity
  3. Item
    Preferred stock
    Answer
    Equity
  4. Item
    Corporate bond
    Answer
    Debt
  5. Item
    Retained earnings
    Answer
    Equity
  6. Item
    Mortgage loan
    Answer
    Debt
  7. Item
    Line of credit
    Answer
    Debt
  8. Item
    Venture capital
    Answer
    Equity
Right
Equity
Instructions
Swipe left if the firm has to repay it, right if it sells a share of ownership.
_Source: OpenStax Introduction to Business, section 16.4 Raising Long-Term Financing_

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Match each market term to its meaning

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Matching pairs
  1. Left
    Primary market
    Right
    Where new securities are sold to the public
  2. Left
    Secondary market
    Right
    Where issued securities are traded
  3. Left
    Underwriting
    Right
    Buying securities and reselling them
  4. Left
    Stockbroker
    Right
    Licensed to trade securities for clients
  5. Left
    Market maker
    Right
    Dealer quoting buy and sell prices
  6. Left
    Fourth market
    Right
    Direct trades over an electronic network
  7. Left
    Circuit breaker
    Right
    Trading halt during a steep index drop
Instructions
Tap a term, then tap the description that fits it.
_Source: OpenStax Introduction to Business, section 16.6 Securities Markets_

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Pick the right short-term funding

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Questions
  1. Question
    Unsecured short-term debt issued by a financially strong corporation
    Choices
    1. Commercial paper
    2. Mortgage loan
    3. Preferred stock
    Correct choice
    Commercial paper
  2. Question
    Selling accounts receivable outright at a discount
    Choices
    1. Trade credit
    2. Factoring
    3. Underwriting
    Correct choice
    Factoring
  3. Question
    Credit the seller gives the buyer until payment falls due
    Choices
    1. Commercial paper
    2. Revolving credit
    3. Trade credit
    Correct choice
    Trade credit
  4. Question
    A guaranteed line of credit that carries an extra fee
    Choices
    1. Revolving credit
    2. Term loan
    3. Factoring
    Correct choice
    Revolving credit
  5. Question
    A loan that requires specific assets pledged as collateral
    Choices
    1. Secured loan
    2. Unsecured loan
    Correct choice
    Secured loan
Instructions
Tap the funding source each description points to.
_Source: OpenStax Introduction to Business, section 16.3 Obtaining Short-Term Financing_

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