Professional Documents
Culture Documents
7. One of the most significant functions of the financial system is the creation of money,
which serves as a medium of exchange.
Answer: T
Difficulty Level: Medium
Subject Heading: Financial System
9. Personal finance is the study of how individuals prepare for financial emergencies,
protect against premature death and property losses, and accumulate wealth.
Answer: T
Difficulty Level: Easy
Subject Heading: Personal Finance
10. Entrepreneurial finance is the study of how individuals prepare for financial
emergencies, protect against premature death and property losses, and accumulate
wealth.
Answer: F
Difficulty Level: Easy
Subject Heading: Entrepreneurial Finance
11. An effective financial system is a complex mix of government and policy makers, a
monetary system, financial institutions, and financial markets that interact to expedite
the flow of financial capital from savings into investment.
Answer: T
Difficulty Level: Medium
Subject Heading: Financial System
12. Secondary securities markets are markets where the transfer of existing debt and
equity securities between investors occurs.
Answer: T
Difficulty Level: Easy
Subject Heading: Financial Markets
13. Primary securities markets are markets where the transfer of existing debt and equity
securities between investors occurs.
Answer: F
Difficulty Level: Easy
Subject Heading: Financial Markets
14. Capital markets are markets where equity securities and debt securities with maturities
of greater than one year are traded.
Answer: T
Difficulty Level: Easy
Subject Heading: Financial Markets
15. Money markets are markets where equity securities and debt securities with maturities
of greater than one year are traded.
Answer: F
Difficulty Level: Easy
Subject Heading: Financial Markets
16. The six principles of finance include (1) Money has a time value, (2) Higher returns are
expected for taking on more risk, (3) Diversification of investments can reduce risk, (4)
Financial markets are efficient in pricing securities, (5) Manager and stockholder
objectives may differ, and (6) Reputation matters.
Answer: T
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
17. The six principles of finance include (1) Money has a time value, (2) Higher returns are
expected for taking on less risk, (3) Diversification of investments can increase risk, (4)
Financial markets are inefficient in pricing securities, (5) Manager and stockholder
objectives may differ, and (6) Reputation matters.
Answer: F
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
18. The principle of finance that "money has a time value" implies Money in hand today is
worth more than the promise of receiving the same amount in the future because a sum
of money today could be invested and grow over time.
Answer: T
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
19. The principle of finance that "money has a time value" implies Money in hand today is
worth less than the promise of receiving the same amount in the future because a sum
of money today could be invested and grow over time.
Answer: F
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
20. The principle of finance that "higher returns are expected for taking on less risk" implies
that rational investors would choose a risky investment only if they feel the expected
return is high enough to justify the greater risk.
Answer: T
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
21. The principle of finance that " higher returns are expected for taking on less risk "
implies that rational investors would choose only safe investment because they
generally do not feel that a higher return enough to justify taking greater risk.
Answer: F
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
22. The principle of finance that "financial markets are efficient in pricing securities" implies
that the prices of securities reflect all information available to the public and that when
new information becomes available, prices quickly change to reflect that information.
Answer: T
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
23. The principle of finance that "financial markets are inefficient in pricing securities"
implies that the prices of securities reflect all information available to the public and that
when new information becomes available, prices quickly change to reflect that
information.
Answer: F
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
24. The principle of finance that "management objectives may differ from owner objectives"
implies that owner returns may suffer as a result of manager objectives.
Answer: T
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
25. The principle of finance that "management objectives may differ from owner objectives"
implies that owner returns may be enhanced as a result of manager objectives that
differ from their own.
Answer: T
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
26. The principle of finance that "reputation matters" implies that for institutions or
businesses to be successful, they must have the trust and confidence of their
customers, employees, and owners, as well as the community and society within which
they operate.
Answer: T
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
27. The principle of finance that "reputation sometimes matters" implies that businesses do
not necessarily require the trust and confidence of their customers, employees, and
owners, as well as the community and society within which they operate, to be
successful.
Answer: F
Difficulty Level: Medium
Subject Heading: Six Principles of Finance
28. While the financial press chooses to highlight examples of unethical behavior, most
individuals exhibit sound ethical behavior in their personal and business dealings and
practices.
Answer: T
Difficulty Level: Easy
Subject Heading: Business Ethics
29. During the past couple of decades, generally high fixed-rate mortgage loan interest
rates and the desire to extend housing ownership to more individuals in the U.S., the
use of adjustable-rate mortgages grew in usage.
Answer: T
Difficulty Level: Medium
Subject Heading: Mortgages
30. During the past couple of decades, generally low fixed-rate mortgage loan interest rates
and the desire to extend housing ownership to more individuals in the U.S., the use of
adjustable-rate mortgages fell.
Answer: F
Difficulty Level: Medium
Subject Heading: Mortgages
31. An adjustable-rate mortgage (ARM) has an interest rate that is usually adjusted
annually to reflect changes in Treasury bill rates (or other benchmark); ARMs typically
have variable interest rates for one to five years with a provision to switch to a fixed-rate
over the remaining life of the ARM.
Answer: T
Difficulty Level: Medium
Subject Heading: Mortgages
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The place became, from about the middle of the eighteenth
century, a favourite resort of London anglers and swimmers, and
many London merchants and persons of good position were among
the subscribers. An annual payment of one guinea entitled
subscribers to the use of the baths, and to the diversion of “angling
and skating at proper seasons.” Occasional visitors paid two shillings
each time of bathing.
THE PLEASURE BATH, PEERLESS POOL, CITY
ROAD.
TERMS OF SUBSCRIPTION.
PLEASURE BATH
£. s. d.
Month 0 9 0
Two Months 0 16 0
Year 1 1 0
Single Bathe 0 1 0
with Towels
and Box
Ditto without 0 0 0
COLD BATH
£. s. d.
Month 0 10 0
Two Months 0 17 0
Year 1 10 0
Single Bathe 0 1 0
The City Road is the line from all parts of the West
End to the City. Omnibuses pass both ways nearly every
minute throughout the day.
1, Bath Buildings Entrance—2, Baldwyn Street
Entrance—3, Cold Bath—4, Pleasure Bath—5, Dressing
Boxes—6, Shrubberies.
BILL OF PEERLESS POOL. Circ. 1846.
About 1805 Mr. Joseph Watts (father of Thomas Watts, the well-
known Keeper of Printed Books at the British Museum) obtained a
lease of the place from St. Bartholomew’s Hospital at a rental of
£600 per annum, and eventually saw his way to a profit by building
on part of the ground. He drained the fish-pond which lay due east
and west, and built the present Baldwin Street on the site. The old-
fashioned house inhabited by Kemp, which stood in a garden and
orchard of apple and pear trees overlooking the west end of the fish-
pond, Watts pulled down, erecting Bath Buildings on the spot.[81]
The pleasure bath and the cold bath he, however, continued to open
to the public at a charge of one shilling, and Hone gives a pleasant
description of it as it was (still in Watts’s proprietorship) in 1826. “Its
size,” he says, “is the same as in Kemp’s time, and trees enough
remain to shade the visitor from the heat of the sun while on the
brink.” “On a summer evening it is amusing to survey the conduct of
the bathers; some boldly dive, others ‘timorous stand,’ and then
descend, step by step, ‘unwilling and slow’; choice swimmers attract
attention by divings and somersets, and the whole sheet of water
sometimes rings with merriment. Every fine Thursday and Saturday
afternoon in the summer, columns of blue-coat boys, more than
three score in each, headed by their respective beadles, arrive, and
some half strip themselves ere they reach their destination; the rapid
plunges they make into the Pool, and their hilarity in the bath, testify
their enjoyment of the tepid fluid.”
The Pool was still frequented in 1850,[82] but at a later time was
built over. Its name is kept locally in remembrance by Peerless
Street, the second main turning on the left of the City Road, just
beyond Old Street, in coming from the City. This street was formerly
called Peerless Row, and formed the northern boundary of the
ground laid out by Kemp.[83]
[Maitland’s Hist. of London, i. p. 84, ff.; Dodsley’s London,
“Peerless Pool”; Noorthouck’s London, p. 756, ff.; Trusler’s London
Adviser (1786), p. 124; Hone’s Every Day Book, i. p. 970, ff.;
Pennant’s London, p. 268; Wheatley’s London P. and P. iii. s.v.;
newspaper cuttings, &c., W. Coll.]
VIEWS.
1. Two woodcuts (pleasure bath and fish-pond) from drawings, circ.
1826, by John Cleghorn in Hone’s Every Day Book (cited above).
2. View of Peerless Pool Bath and Gardens in 1848; coloured
drawing by Read. Crace, Cat., p. 608, No. 9.
3. The Pleasure Bath, Peerless Pool. An advertisement bill with
woodcut of the bath, surrounded by trees and shrubberies, and a plan
of the vicinity (1846?), W. Coll.; cp. Crace, Cat., p. 608, No. 8.
THE SHEPHERD AND SHEPHERDESS, CITY ROAD
MARYLEBONE GROUP
MARYLEBONE GARDENS
VIEWS.
1. A view of Marybone Gardens and orchestra, J. Donnowell del.
1755; published by J. Tinney. Crace, Cat. p. 566, No. 74.
2. Modifications of 1, published by R. Sayer, 1755, and by Bowles
and Carver. Crace, Cat. p. 566, Nos. 75, 76. Also 1761, published by
J. Ryall [W. Coll.].
3. Views of Rose of Normandy. Crace, Cat. p. 566, Nos. 79–81; p.
567, No. 82.
THE QUEEN’S HEAD AND ARTICHOKE
VIEWS.
1. A water-colour drawing by Findlay, 1796. Crace, Cat. p. 569, No.
104; cp. an engraving of the inn in Walford, v. p. 258, and a small
sketch in Clinch’s Marylebone, p. 45 (dated 1796).
2. An engraving published in Gent. Mag. 1819, pt. 2, p. 401;
reproduced in Clinch’s Marylebone, facing p. 40.
THE JEW’S HARP HOUSE AND TEA GARDENS
VIEWS.
The Jew’s Harp public-house in Marylebone Park. A water-colour
drawing by Bigot, 1794. Crace, Cat. p. 569, No. 106; cp. a sketch in
Clinch’s Marylebone, p. 48.
THE YORKSHIRE STINGO
VIEWS.
1. “The Yorkshire Stingo in 1770,” a small sketch in Clinch’s
Marylebone, p. 46, showing the tavern and the entrance to the tea-
gardens.
2. View of the new County Court and the Baths and the Wash-
Houses, built upon the ground of the late tea-gardens, &c., of the
Yorkshire Stingo Tavern. A woodcut, 1849. Crace, Cat. p. 567, No. 89.
BAYSWATER TEA GARDENS
and in this garden he grew the plants for his wonderful Water
Dock Essence and Balm of Honey.
Hill died in 1775, and his garden was (some years before 1795)
turned into a place of amusement, known as the Bayswater Tea
Gardens, and much frequented by the denizens of Oxford Street and
neighbourhood.[124] Views of 1796 show the boxes and arbours, and
a family party, more plebeian than that in George Morland’s “Tea
Garden,” in full enjoyment of their tea. Waiters are bustling about
with huge kettles crying “’Ware kettle, scaldings!”
The Bayswater Tea Gardens are mentioned in the Picture of
London, 1823–1829, among those frequented by Londoners of the
middle classes. From about 1836 they appear to have been called
the Flora Tea Gardens, Bayswater.