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
What is the name for the set of regulations pertaining to flows of capital into and out of a country? A) capital controls B) target zone system C) crawling peg D) lead-lag operations ANSWER Answer: A
Date: September 19th, 2020
What is the name for the composite currency that consists of various units of other currencies? A) pegged currency B) seignorage C) basket of currency D) special drawing rights ANSWER Answer: C
Date: September 19th, 2020
A technique that provides an analyst with the information concerning the proportion of each type of account that has been outstanding for a specified period of time is called ________. A) credit analysis B) credit scoring C) aging of receivables D) the economic order quantity model ANSWER C
Date: September 19th, 2020
Which of the following is true of cash discount? A) It increases bad debts because after availing discounts all customers may not pay. B) It decreases the investment in accounts receivable and increases the per unit profit. C) It helps to speed up collections without putting pressure on customers. D) It reduces sales because the […]
Date: September 19th, 2020
When a firm initiates or increases a cash discount, sales are expected to ________, the investment in accounts receivable is expected to ________, the bad debt expense is expected to ________, and the profit per unit is expected to ________. A) decrease; increase; increase; increase B) decrease; decrease; increase; increase C) increase; increase; decrease; decrease […]
Date: September 19th, 2020
When a firm decreases or cancels a cash discount, sales are expected to ________, the investment in accounts receivable is expected to ________, the bad debt expense is expected to ________, and the profit per unit is expected to ________. A) decrease; increase; increase; increase B) decrease; decrease; increase; increase C) increase; increase; decrease; decrease […]
Date: September 19th, 2020
If the cash discount period is increased, a firm’s investment in accounts receivable is expected to ________. A) increase because existing customers attracted by the new policy will buy more products B) decrease because of non–discount takers paying earlier to avail the cash discount C) decrease because discount takers will pay more in order to […]
Date: September 19th, 2020
