Financial Risk Management Quiz
Each question in the quiz is of identification, and “true or false” format. Read each
question carefully, and click on the button next to your response that is based on the
information covered on the topic discussed.
After responding to a question, click on the "next question" button at the bottom to go to
the next question.
The total score for the quiz is based on your responses to all questions. If you respond
incorrectly to a question or retake a question again and get the correct response, your
quiz score will reflect it appropriately. However, your quiz will not be graded, if you skip
a question or exit before responding to all the questions.
Part 1. Identification.
1. ________ are the major source of long-term debt financing for most corporations.
Ans: Bonds
2. __________ is a short-term security, or note, containing a borrower's promise to
pay.
ans: Commercial paper
3. __________ is long-term borrowing from sources outside of the company.
Ans: Debt financing
4. __________ is the use of common stock and/or retained earnings to raise long-
term funding.
Ans: Equity financing
5. The principle that safer investments tend to offer lower returns while riskier
investments tend to offer higher returns is called.
Ans: Risk-return relationship
