1. What is the primary goal of asset and liability management for a higher institute?

A) To maximize profits

B) To minimize losses

C) To maintain an appropriate balance between assets and liabilities

D) To increase the number of assets and decrease the number of liabilities

Answer: C) To maintain an appropriate balance between assets and liabilities

2. Which of the following is an example of an asset for a higher institute?

A) Tuition revenue

B) Outstanding loans to students

C) Salaries payable to faculty

D) Rent owed on campus buildings

Answer: A) Tuition revenue

3. What is financial risk?

A) The likelihood of experiencing financial loss

B) The amount of money a company has in the bank

C) The rate of inflation in the economy

D) The price of stocks on the stock market

Answer: A) The likelihood of experiencing financial loss

4. Which of the following is an example of financial risk for a higher institute?

A) The risk of losing accreditation

B) The risk of not having enough parking spaces on campus

C) The risk of a major earthquake hitting the region

D) The risk of a professor retiring

Answer: A) The risk of losing accreditation.

5. What is a financial crisis in higher education institutions?

A) A situation where the government provides inadequate funding for higher education institutions.

B) A situation where the cost of tuition increases beyond the ability of most students to pay.

C) A situation where higher education institutions experience significant budget shortfalls that threaten their financial viability.

D) A situation where students have difficulty obtaining student loans.

Answer: C. A situation where higher education institutions experience significant budget shortfalls that threaten their financial viability.