Part 2

Question 1

What does “finance” mean in simple terms?

Answer 1

Money

Question 2

What is Financial Management?

Answer 2

The art and science of managing money

Question 3

Raise, invest & reinvest or distribute. Who does this kind of financial activity - Individuals or Businesses?

Answer 3

Businesses.
They raise money, invest the money in profitable ventures and the profits earned are either reinvested into the business or distributed to the investors.

Question 4

XYZ & Co. would like to extend credit to its debtors from 45 days to 60 days. Can finance techniques be used to analyze this?

Answer 4

Yes, finance techniques will help in knowing if the business will earn extra returns if credit is extended.

Question 5

I want to decide where to invest my money. Does it require applications of finance techniques?

Answer 5

Yes! Finance will help in deciding which investment avenues will generate higher returns.

Question 6

Application techniques of finance will help decide whether I should use my savings or borrow money when I wish to procure a Jeep Compass. True/false

Answer 6

True.

Question 7

World’s most widely used currency ?

Answer 7

US Dollars ($) is the global currency which is accepted for trade throughout the world.

Question 8

The US Dollar is one of the most popular currencies in the world but it is not the most expensive. Which is the world’s highest valued currency?

Answer 8

Kuwaiti Dinar