In which one of the following systems would it be least difficult to quantify the currency risk? A) floating exchange system B) target zone system C) pegged exchange rate system D) currency board ANSWER Answer: A
Date: September 19th, 2020
What are the savings of marginal bad debts under the proposed plan? (See Table 14.7) A) $500,000 B) $50,000 C) $10,000 D) $5,000 ANSWER B
Date: September 19th, 2020
What is the cost of the marginal cash discount? (See Table 14.7) A) $768,750 B) $300,000 C) $307,500 D) $230,625 ANSWER D
Date: September 19th, 2020
What is the net result of increasing the cash discount? (See Table 14.7) A) +$33,750 B) -$33,750 C) +$128,750 D) -$58,750 ANSWER C
Date: September 19th, 2020
When countries have pegged exchange rate systems, they often set up ________ to improve the credibility of the system in the eyes of the global traders. A) target zone systems B) futures markets for currencies C) currency board systems D) sterilized interventions ANSWER Answer: C
Date: September 19th, 2020
What is the name of the exchange rate system where the governments attempt to make sure the values of their currencies trade at particular values in the foreign exchange market, relative to another currency or a “basket” of currencies? A) European currency unit B) fixed currencies C) floating currencies D) dirty float currency […]
Date: September 19th, 2020
A decrease in collection efforts by a firm will result in ________ in sales volume, ________ in the investment in accounts receivable, ________ in bad debt expenses, and ________ in collection expenditures. A) an increase; an increase; an increase; a decrease B) an increase; a decrease; an increase; an increase C) an increase; a decrease; […]
Date: September 19th, 2020
What is the name of the value of the real resources that the central bank obtains through the creation of base money? A) seigniorage B) sterilized intervention C) dollarization D) target zone ANSWER Answer: A
Date: September 19th, 2020
An increase in accounts receivable turnover for a firm due to an increase in collection efforts will ________. A) decrease the firm’s marginal investments in accounts receivable B) increase the firm’s marginal investments in accounts receivable C) decrease the firm’s collection expense D) increase the firm’s bad debt expense ANSWER A
Date: September 19th, 2020
Which account should NOT be included in the asset section of a central bank balance sheet? A) currency in circulation B) official international reserves C) domestic credit D) government bonds ANSWER Answer: A
Date: September 19th, 2020
