Financial Management 1

What are other terms for NetWorth? Select all that apply.

Which term refers to the potential risk for poor decision-making practices to adversely affect the performance of the a CU?

What term refers to the potential for a lack of marketability or difficulty in converting an investment into cash without causing significant price discounts?

Ratios are useful because they allow you to compare different CUs or your own CU over a time regardless of size or growth.

What are the 5 levels of a spread analysis? Select all that apply.

What are the 3 corners to the financial triangle?

Networth goes up or down if we make money?

Liabilities + Equity =

What risk refers to the potential for losses due to insufficient reserves to absorb unexpected losses or economic downturns?

An income statement shows the financial performance over a period, while a balance sheet presents its financial position at a specific point in time.

What are other terms for NetWorth? Select all that apply.

Which term refers to the potential for changes in interest rates to impact the value of investing or the cost of borrowing?

Networth / Assets = Capital Ratio

Networth will go up or down if assets grow?

What does the acronym CAMELS stand for? Select all that apply.

Which term refers to the potential for portfolios heavy concentration in a specific asset or sector to result in significant losses?

Which term refers to the potential for borrowers to default on their loans, result in a finical losses?

On which statement would you find out how much money you made on your auto loan portfolio?

On which statement would you find the total balances on credit cards?

Revenue - expenses = Net Income