American Depository Receipt (ADR)

American Depository Receipt (ADR)
 By Finance Ocean

What does an American Depository Receipt (ADR) represent?

Pick an answer:

1. A U.S. security traded in a foreign market
2. A foreign security in a U.S. market
3. A U.S. CD held by a foreign entity
4. A foreign CD held by a U.S. entity

Answer: # 2

Explanation: An ADR is a receipt issued by U.S. banks that shows ownership of a foreign security.
These receipts are then traded in U.S. securities markets.

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The Term Auction Facility

The Term Auction Facility
 By Finance Ocean

The Term Auction Facility (TAF), created by the Federal Reserve to address problems caused by the subprime mortgage crisis, was started in what year?

Pick an answer:

1. 2007
2. 2008
3. 2009
4. 2010

Answer: # 1


Explanation: The Term Auction Facility (TAF) was designed as a temporary Federal Reserve program to "address elevated pressures in short-term funding markets".

With the program, the Federal Reserve auctions collateralized loans with terms of 28 and 84 days to depository institutions. The program started in December 2007 in response to problems caused by the subprime mortgage crisis.

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Measuring Volatility

Measuring Volatility
 By Finance Ocean

What term refers to the measure of a stock's volatility relative to the rest of the market?

Pick an answer:

1. Beta
2. WACC
3. Liquidity
4. Market Capitalization

Answer: # 1


Explanation: A stock's Beta is a measure of its volatility relative to the market. WACC refers to a company's weighted average cost of capital (the weighted rate of its debt and equity). Liquidity refers to the ability to buy or sell and asset quickly without substantially affecting the price.

Market capitalization is the total number of a company's shares outstanding multiplied by its current stock price.

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Oil & Gas Partnerships

Oil & Gas Partnerships
 By Finance Ocean

An investor in which of the following oil and gas limited partnership programs would bear the greatest amount of risk?

Pick an answer:

1. Combination
2. Exploratory
3. Developmental
4. Income

Answer: # 2


Explanation: Exploratory oil and gas limited partnerships are considered to be the most risky.

Such partnerships drill new oil wells where oil has not yet been discovered and therefore carry a lot of risk.

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Private Equity Funds

Private Equity Funds
 By Finance Ocean

What type of private equity fund specializes in very early-stage start-up companies?

Pick an answer:

1. Venture Capital Fund
2. Growth Capital Fund
3. Buy-Out Fund
4. Fund of Funds

Answer: # 1
Explanation: A venture capital fund provides capital early-stage companies. A growth capital fund provides capital to more mature companies looking to continue their growth.

Buy-out funds usually acquire entire companies in order to restructure or reorganize them to create more value. Fund of funds invest less directly in companies and instead fund other types of private equity funds.

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Current Assets Less Current Liabilities

Current Assets Less Current Liabilities
 By Finance Ocean

What term refers to the difference between current assets and current liabilities?

Pick an answer:

1. Financial Spread
2. Gross Margin
3. Net Margin
4. Working Capital

Answer: # 4
Explanation: Working capital represents current assets less current liabilities. More generally, working capital measures how much in liquid assets a company has available to build its business.

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Non-Profit Accounting

Non-Profit Accounting
 By Finance Ocean

On a non-profit organization's balance sheet, what is the equivalent of owner's equity?

Pick an answer:

1. Public Equity
2. Private Equity
3. Public Assets
4. Net Assets

Answer: # 4
Explanation: Net assets is the term used for equity in the non-profit sector. Net assets are equal to total assets minus total liabilities — hence the term "net assets."

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Backing Bonds

Backing Bonds
 By Finance Ocean

Which of the following bonds are directly backed by the United States government?

Pick an answer:

1. Moral Obligation Bonds
2. GO Bonds
3. NHAs & PHAs
4. Double-Barrelled Bonds

Answer: # 3

Explanation: Public Housing Authority (PHA) issues and New Housing Authority (NHA) issues are backed in full by the United States government.

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Option Options

Option Options
 By Finance Ocean

Which of the following option strategies would provide an investor with the greatest gain potential in a rising market?

Pick an answer:

1. Short Put
2. Long Put
3. Short Call
4. Long Call

Answer: # 4

Explanation: Both long calls and short puts are profitable in a rising market, but long calls have unlimited gain potential.

A short put is limited to the premium received for it.

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Capital Markets.

Intangible Accounting

Intangible Accounting
 By Finance Ocean

Which of the following is not an intangible asset?

Pick an answer:

1. Goodwill
2. A Patent
3. A Brand
4. Options

Answer: # 4


Explanation: Intangible assets are identifiable non-monetary assets that cannot be seen, touched or physically measured. They are created through time and/or effort and are identifiable as a separate asset.

An option is a monetary asset and does not meet the definition of an intangible asset.

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Finance Quiz: Public or Private?

Public or Private?
By Finance Ocean


Which of the following well-known companies is the only public company as of May 2011?

Pick an answer:

1. Cargill
2. Chrysler
3. General Motors
4. Toys "R" Us

Answer: # 3

Explanation: Although the company filed for Chapter 11 reorganization in June 2009, General Motors emerged from reorganization and was listed on major stock exchanges on November 18, 2010 with the world's largest IPO.

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Big Money

Big Money
 By Finance Ocean

What is the largest denomination of bills in U.S. currency?

Pick an answer:

1. $100
2. $500
3. $1,000
4. $10,000

Answer: # 1
Explanation: Currently, the largest denomination is $100. However, when the U.S. government first began issuing dollars in 1861, they also printed $500, $1,000, $5,000, $10,000 and $100,000 bills.

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First Listed Company

First Listed Company
 By Finance Ocean

What was the first listed company on the New York Stock Exchange?

Pick an answer:

1. Bank of New York
2. DuPont
3. Hartford
4. Wiley

Answer: # 1

Explanation: The Bank of New York was the first corporate stock traded under the Buttonwood tree in 1792.

It was the first listed company on the New York Stock Exchange.

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The First Billionaire

The First Billionaire
By Finance Ocean

Who was the first billionaire in the United States?

Pick an answer:

1. Benjamin Franklin
2. Andrew Carnegie
3. J.P. Morgan
4. John D. Rockefeller

Answer: # 4


Explanation: John D. Rockefeller founded the Standard Oil Company in 1870. When gas and kerosene began to increase in importance, his wealth increased dramatically, making him the first billionaire in the United States.



When adjusting for inflation, many regard him to be the richest person of all time.


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at FinanceOcean.org or read up on
Financial History.

Generational Debt

Famous Quote: Generational Debt
 By Finance Ocean

Who said: No generation has a right to contract debts greater than can be paid off during the course of its own existence?

Pick an answer:

1. Ben Bernanke
2. Thomas Jefferson
3. Alan Greenspan
4. Hank Paulson

Answer: # 2


Explanation: This quote is from a letter written by Thomas Jefferson to James Madison Paris on September 6, 1789. Jefferson sought to explore "The question Whether one generation of men has a right to bind another."


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at FinanceOcean.org or read up on
Financial History.

Presidential Market Debut

Presidential Market Debut
 By Finance Ocean

Who was the first sitting U.S. President to visit the New York Stock Exchange?

Pick an answer:

1. Calvin Coolidge
2. Franklin Roosevelt
3. Ronald Reagan
4. Barrack Obama

Answer: # 3


Explanation: On March 28, 1985, President Ronald Reagan made his first of two visits to the New York Stock Exchange. President Reagan was the first sitting U.S. president to visit the NYSE.


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at FinanceOcean.org or read up on
Financial History.

Practice Interview

It's getting close to graduation and everyone should be looking for jobs if they haven't found one already. After honing your résumé and drafting cover letters, you get the big payoff when you get called back for an interview.

Now what?

Well, you certainly need to research the company you're interviewing with and you also need to start practicing for the interview. Grab a partner, download some sample questions and have at it.

Can't find a partner? Try this practice interview simulation.

Microfinance Quiz

Microfinance Pioneer Muhammad Yunus

By Finance Ocean

Nobel Prize winner Muhammed Yunus began pioneering the idea of microfinance in which country?

Pick an answer:

1. India
2. Bangladesh
3. Sri Lanka
4. Pakistan

Answer: # 2


Explanation: Muhammad Yunus is an economist from Bangladesh who founded the Grameen Bank. The Grameen Bank is a financial institution that provides micro loans to help its clients establish creditworthiness and financial independence. Mr. Yunus and the Grameen Bank won the Nobel Peace Prize in 2006.

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at FinanceOcean.org or read up on
Social Finance.