Finance Week 1 Quiz

Which type of finance focuses on managing personal income, expenses, savings, and investments? Select an option Personal finance Corporate finance Public finance Microfinance

Correct Answer: Personal finance

What financial goal aims to minimize the potential of loss? Select an option Wealth maximization Risk minimization Liquidity management Efficient allocation of resources

Correct Answer: Risk minimization

Which financial statement provides a snapshot of a company's financial position at a specific point in time? Select an option Balance sheet Income statement Cash flow statement Statement of retained earnings

Correct Answer: Balance sheet

What type of interest takes into account both the initial principal and the accumulated interest from previous periods? Select an option Simple interest Nominal interest Effective interest Compound interest

Correct Answer: Compound interest

What is the process of discounting future cash flows to their present value? Select an option Discounting Compounding Amortization Depreciation

Correct Answer: Discounting