2010 DECA U Provincial ConferenceFinancial Services
2010 DECA U Provincial Conference
Financial Services
FS
1. Businesses usually are unable to enter into legally binding contracts with
A.tourists.C.foreigners.
B.senior citizens.D.minors.
2.Under the Clean Water Act, the Environmental Protection Agency has the authority to
A.monitor water levels in rivers and streams.
B.set water quality standards for industry.
C.decide where you must get your water supply.
D.determine how much water you can use for your industry.
3.Which of the following pieces of legislation allows for the consolidation of commercial and investment banks, insurance companies, and securities firms:
A.Securities Exchange Act of 1934 C.Sarbanes-Oxley Act of 2002
B.Gramm-Leach-Bliley Act D.Glass-Stegall Act
4.Which of the following is a tax-deductible gift:
A.Charitable donation C.Stocks
B.Vacation home D.Inherited items
5.What can a financial-services business do to ensure that it is following government regulations?
A.Monitor service procedures C.Develop a business plan
B.Improve technical systems D.Conduct a compliance audit
6. How can a business maintain its ethical responsibility of protecting the privacy of its customers' financial information?
A.Review inventory systems C.Monitor competitors' activities
B.Develop collection procedures D.Implement security policies
7.When a manager tells an employee to take charge of a project, the employee is receiving
A.social directions. C.nonverbal directions.
B.oral directions.D.written directions.
8.Which of the following is a rule of good listening:
A.Eliminate background noise. C.Be thinking about what you will say next.
B.Listen with empathy. D.Stand as close as possible to the speaker.
9.When giving a verbal presentation, a speaker who distinctly voices the sounds of words is using proper
A.pronunciation.C.tone.
B.enunciation.D.vocabulary.
10.Which of the following actions is it important for a speaker to take when s/he makes an oral business presentation to a large group:
A.Speak loudly enough for the audience to hear the message
B.Turn away from the audience when presenting visual aids
C.Avoid eye contact with anyone in the audience
D.Relax the audience by swaying back and forth when speaking
11.The main form of written communication within a business is
A.memorandums.C.staff meetings.
B.business letters.D.telephone calls.
12.Which of the following types of messages presents evaluative information:
A.Analytic C.Simple
B.Explanatory D.Complex
13.A simple, or short, report differs from a complex report in that the simple report is
A.not in memo form.C.less formal.
B.more comprehensive.D.not used in decision making.
14.Information that is informally passed to the staff of a business is referred to as ______communication.
A.grapevine C.formal
B.vertical D.horizontal
15."The customer is ALWAYS right," is a philosophy many businesses try to follow in order to
A.make employees' jobs easier. C.create positive customer/client relations.
B.prevent any conflict with customers/clients. D.help employees handle selling objections.
16.Stock brokers sometimes have difficulty meeting the needs of customers who are
A.decisive.C.silent.
B.agreeable.D.patient.
17.A good way for bank tellers to prevent customer complaints is by
A.pressuring customers to open additional accounts.
B.discussing all of the bank’s products.
C.determining each customer’s needs.
D.asking customers personal questions about their ethnicity.
18.What do finance professionals need to do to build long-term relationships with their clients?
A.Be honest, open, and trustworthy C.Follow-up with clients every two years
B.Invest all clients' money conservatively D.Require clients to sign a short-term contract
19.Businesses use data-cleansing applications to
A.generate necessary reports. C.duplicate internal records.
B.calculate statistical data. D.update their databases.
20.For her best friend's birthday, Keisha is shopping for a unique item—no substitute will do, and price is no object. What type of item is Keisha shopping for?
A.Convenience C.Shopping
B.SpecialtyD.Industrial
21.Ronnie's Retail Mart recently began a layaway program for large-ticket items. By introducing this lay-away program, Ronnie's hopes to increase ______utility.
A.possession C.time
B.place D.form
22.If customers feel that a product's price is too high, they will probably
A.buy less of the product. C.make a formal complaint.
B.call the Better Business Bureau.D.try to negotiate the price.
23.With Rosita's pizza shop, financial analysis is used to
A.obtain funding for supplies. C.oversee the baking process.
B.attract customers. D.develop the best recipe.
24.Which of the following is not an external factor affecting profit:
A.Chance C.Economy
B.Risk D.Demand
25.Potential losses that businesses face are called
A.liabilities.C.insurable risks.
B.business risks.D.uninsurable risks.
26.The practice of allowing workers to assume some higher level decision making is called job
A.analysis. C.enlargement.
B.containment. D.enrichment.
27.Why does the Gross Domestic Product include only finished goods?
A.To account for public goods C.To omit welfare payments
B.To avoid double counting D.To correct for inflation
28.Brent likes to use his emotional intelligence to describe his feelings in accurate terms. What benefit of emotional intelligence is he experiencing?
A.Communicating needs effectively C.Understanding other people's needs
B.Responding to criticism D.Responding to difficult people
29.Lack of initiative cannot be tolerated for long in most occupations. Which of the following is not a result of employee initiative:
A.An employee who receives an "Employee of the Month" award
B.An employee's receiving high job evaluation ratings
C.An employee given added responsibility
D.An employee's completing an inventory assignment on time
30.How employees behave and how they treat other people at work often have an effect on whether they
A.receive fair wages. C.earn vacation time.
B.receive benefits. D.get promoted.
31.Which of the following statements about change in the workplace is true:
A.An employee often can change the behavior of coworkers.
B.Being receptive to change helps employees to be successful.
C.Employees accept change better if it is unexpected.
D.Employees usually can refuse to make changes they don't like.
32.Which of the following is a way to demonstrate empathy:
A.Develop a good imagination. C.Keep an open mind.
B.Use tact when speaking.D.Sympathize with a coworker.
33.Smiling at customers and looking them in the eye is what type of communication?
A.Negative C.Nonverbal
B.Verbal D.Effective
34.Frederick has been criticized by his supervisor and knows the criticism is justified, but he still feels defensive. This physiological response to stress is the ______response.
A.eustressC.fight or flight
B.over-reaction D.stimulus
35.How does a goal differ from a vision?
A.There is no difference—the two are the same.
B.A goal could mean different things to different people.
C.A goal is abstract and indefinite.
D.A goal is concrete and measurable.
36.Why is accepting responsibility for your own actions important to effective human relations skills?
A.It helps you to be objective. C.It helps you to be enthusiastic.
B.People will be able to depend on you. D.People will not take advantage of you.
37.Whenever a business extends credit to customers, it allows them to obtain goods and services immediately with
A.payment to be made at a future date.C.no interest charges for 90 days.
B.no identification required.D.payment spread over a 12-month period.
38.What do many individuals establish when planning for future financial needs?
A.Checking account C.Line of credit
B.Living will D.College fund
39.What is the key to successful investing?
A.Avoiding opportunity costs C.Getting started early
B.Inflation D.The rule of 72
40.Commercial banks and brokerage firms are examples of
A.insurance institutions.C.financial intermediaries.
B.legislative groups.D.nonprofit organizations.
41.Cocoa beans and corn are examples of investments that people make in which of the following financial markets:
A.Selective property C.Soft commodities
B.Insurance D.Money
42.Supervised by the Federal Reserve Board, The DAB Company provides investment advisory services, insurance underwriting, securities underwriting, and merchant banking services. The DAB Company is an example of a(n)
A.financial auditing institution.C.financial holding company.
B.accounting firm.D.commodities investor.
43.Which of the following is an example of arbitrage:
A.An individual earns interest on his/her money by agreeing to leave it in a financial institution for a certain timeframe.
B.An individual buys 10 shares of stock for $150 per share on one market, and immediately sells each share for $200 on another market.
C.A business places a percentage of its income into a retirement account for employees.
D.A business sells corporate bonds to obtain funds to finance major expansion efforts.
44.Which of the following is characteristic of an emerging market:
A.Low gross domestic product due to high foreign investment
B.Strong and highly developed infrastructure
C.High-yield bond markets that operate in a secure economic climate
D.Unstable stock markets in a transitional economy
45.Form 10-K is most like
A.the bottom line.C.the annual report.
B.Form 10-Q. D.the cash flow statement.
46.What might a dividend payout tell you about a company?
A.It's reinvesting its profits back into the business.
B.It's trying to rid itself of cash.
C.It's a well-established company.
D.It's paying back a loan.
47.It's a good idea for an investor to watch the numbers on a stock table
A.once a year.C.over a period of time.
B.just for a given day.D.when dividends are paid.
48.What kind of insurance will help to pay your hospital bill if you are seriously ill?
A.Homeowner's C.Liability
B.Disability D.Health
49.The impact of some business risks can be reduced if the business transfers the risk to another business by
A.purchasing insurance.C.employing security guards.
B.hiring a risk specialist.D.installing burglar alarms.
50.A business has an inventory valued at $750,000. This amount would appear in the business's balance sheet under
A.current assets.C.cash.
B.liabilities.D.income.
51.What do savings and loan companies often consider when identifying future hiring needs?
A.Recruitment processC.Interview length
B.Selection techniqueD.Estimated turnover
52.Exit interviews can be conducted in each of the following ways except by
A.third-party.C.interview.
B.questionnaire.D.phone survey.
53.One of the major objectives of employee orientation is to
A.determine training needs. C.evaluate the hiring decision.
B.increase employee turnover.D.reduce anxiety for new employees.
54.Bank managers can help to increase productivity for the entire organization by
A.closely monitoring employees' actions.C.placing their careers first.
B.increasing the productivity of subordinates.D.focusing on their own productivity.
55.If a two-year service contract costs $2,900 and can be renewed for the same price and a four-year service contract costs $4,150, how much will a bank save by purchasing the four-year contract rather than renewing the two-year contract?
A.$1,250C.$1,650
B.$1,450D.$1,950
56.Calculate the amount a small investment business can save in payroll expense for a four-week period by hiring four part-time employees who each work five hours a day, five days a week, for $8.50 an hour to replace two full-time employees who each earn $475 a week.
A.$375C.$550
B.$400D.$800
57.The objectives that managers develop for a financial services business to attain are also intended to serve as operating
A.standards.C.regulations.
B.guidelines.D.requirements.
58.Successful bank managers and supervisors usually move up the career ladder as a result of beginning their employment as
A.interns.C.tellers.
B.volunteers.D.apprentices.
59.Job applicants often list on their résumés the names, positions, and addresses of several people who are willing to serve as
A.references.C.associates.
B.companions.D.colleagues.
60.Which of the following skills will most likely help a person to obtain a better job in the field of financial services marketing:
A.Ability to use technologyC.Management skills
B.Good interpersonal skillsD.Ability to negotiate
61.The determination of an exchange figure acceptable to both the buyer and the seller of a financial good or service is called
A.pricing.C.place decision.
B.promotion.D.product decision.
62.Price discrimination is legal in all of the following situations except when
A.buyers are not competitors.C.prices do not limit competition.
B.prices inhibit competition.D.price differs to meet competitors prices.
63.A financial services business serving a market in which products are similar and price is a key purchasing consideration should use ______pricing.
A.demandbasedC.costbased
B.competitionbasedD.profitbased
64.An invoice dated June 5 states that the terms of sale are 4/10 net 30. If the invoice amount is $800 and the purchaser pays the invoice on July 2, the final cost to the purchaser is
A.$720.C.$768.
B.$760.D.$800.
65.A bank that offers a savings account to children for one price and the same type of savings account to senior citizens for a different price is using ______pricing.
A.product-formC.time-of-day
B.location-orientedD.customer-segmented
66.Which of the following is an important factor that financial institutions should consider when pricing their services:
A.Managers' bonus systemC.Stockholders' investment
B.Employees' benefit packageD.Customers' perceived value
67.What process do investment businesses follow in order to direct and control all phases in the life of a financial good or service?
A.Growth marketingC.Concept testing
B.Idea positioningD.Product managing
Test 821FINANCIAL SERVICES MANAGEMENT
68.Which of the following is designed to protect consumers in any dealings they may have with collection agencies:
A.Fair Credit Billing Act C.TruthinLending Act
B.Fair Debt Collection Act D.Fair Credit Reporting Act
69.An individual financial good, service, or idea that a credit union offers for sale is a product
A.line.C.mix.
B.item.D.market.
70.All of the following are examples of popular financial services except
A.safe-deposit boxes.C.payroll and accounting services.
B.financial-planning services.D.business security and surveillance.
71.One way that a retirement planner's product gains a competitive advantage over a competitor's similar product is by providing a
A.unique value.C.matching trait.
B.like benefit.D.standard image.
72.Which of the following is a technique that banks can use to monitor their clients' satisfaction with the services provided:
A.Apologize for making mistakesC.Correct problems as quickly as possible
B.Promise to do whatever a client wantsD.Develop relationships to encourage feedback
73.Communication activities that are designed to inform consumers about financial goods and services to achieve a desired outcome is called
A.pricing.C.marketing.
B.promotion.D.distribution.
74.Which of the following is an example of a general business magazine:
A.FortuneC.Newsweek
B.American BankerD.TV Guide
75.Advances in technology make it possible for banks to produce direct-response advertising that is
A.competitive.C.guaranteed.
B.understandable.D.personalized.
76.When testing a web site, it is important for a savings and loan company to
A.use low screen resolutions.C.be sure that all graphics are included.
B.have all the links installed.D.test from different browsers and operating
systems.
77.Where might a well-known investment company decide to place an ad to reach a large, nationwide audience?
A.Weekend, late news showC.Late-fringe, weekday movie
B.Early morning weather reportD.Prime-time network program
78.Which of the following is a guideline for writing a news release:
A.Be objective in presenting factsC.Use several pages to tell the complete story
B.Close with a summary of the main pointsD.Allow the media to correct spelling and grammar
79.A credit union's offer of a camera to each new customer is an example of a ______premium.
A.salesleadC.directsales
B.selfliquidatingD.pointofpurchase
80.Which of the following is an example of a socially responsible promotion:
A.Announcing upcoming salesC.Explaining business policies
B.Supporting worthwhile causesD.Describing recent renovations
81.The overall objectives of an investment firm's promotional plan are to stimulate product demand and
A.expand the promotional mix.C.create a positive image.
B.reinforce channel members' attitudes.D.identify consumers' personal values.
82.Financial services businesses often coordinate their promotional activities in order to attract customers and
A.increase sales.C.collect data.
B.survey opinions.D.conduct research.
83.Methods for post-testing advertisements to evaluate their effectiveness often include which of the following:
A.Observation and handling objectionsC.Focus groups and recall testing
B.Cold canvassing and blind prospectingD.Test-marketing and random sampling
84.Customers who arrange for a financial institution to administer their assets for the benefit of their children are establishing a(n)
A.estate. B. guardianshipC.will.D.trust.
85.Which of the following is an attitude that would help a stockbroker to build a clientele:
A.Sincerity B. ArtfulnessC.SuperiorityD.Self-centeredness
86.A financial services business establishes rules for appropriate and acceptable salesperson behavior in selling situations. The universal term for the rules is often referred to as the
A.code of ethics. C.charter of selling behavior.
B.corporate bylaws.D.principles of moral conduct.
87.For which of the following reasons do financial institutions make mortgage loans to customers:
A.To consolidate debtC.To buy furniture
B.To purchase propertyD.To secure credit
88.Which of the following is one characteristic of savings bonds that makes them good investment options:
A.Low commission rateC.Mature very quickly
B.No penalty for early redemptionD.Backed by the government
89.What is one of the reasons why it is important for financial services salespeople to prepare for sales presentations?
A.Builds confidenceC.Develops feedback
B.Promotes understandingD.Establishes contact
90.An example of a greeting approach used to open the sale is
A."May I help you, sir?" C."Good morning, Mrs. Jones."
B."I'll be right with you."D."That is a free checking account."
91.To determine if a customer requires help in making buying decisions, the financial services salesperson should
A.use highpressure sales techniques. C.question the customer.
B.wait for the customer to ask for assistance. D.describe the product.
92. What type of financial product might an investment company recommend to a business that is establishing a
retirement program for its employees?
A.Mutual fundsC.Demand deposits
B.Certified checksD.Promissory notes
93.Suggestion selling benefits the financial services business by
A.reducing ill will.C.increasing profits.
B.reducing expenses.D.increasing commissions.
94.Why do successful bank supply salespeople follow up after the sales presentation?
A.To ensure customer satisfaction C.To exercise good sales techniques