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
Which one of the following systems would most often be used by a developing economy? A) target zone B) currency board C) floating exchange rate D) crawling peg ANSWER Answer: D
Date: September 19th, 2020
What is the most likely outcome if a central bank suddenly prints a large amount of new money? A) no change in the inflation rate B) higher inflation C) recession D) prosperity ANSWER Answer: B
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
The ________ on an asset is the expected return on the asset in excess of the return on a risk-free asset. A) risk premium B) covariance C) systematic risk D) beta ANSWER Answer: A
Date: September 19th, 2020
Official international reserves consist of three major components EXCEPT: A) gold reserves. B) foreign exchange reserves. C) deposits of private financial institutions. D) IMF-related reserves assets. ANSWER Answer: C
Date: September 19th, 2020
The special drawing rights of the IMF and the European currency unit are two examples of ________. A) currency boards B) floating exchange rates C) target zones D) baskets of currencies ANSWER Answer: D
Date: September 19th, 2020
