________ float results from the lapse between the time when a firm deducts a payment from its checking account ledger and the time when funds are actually withdrawn from its account. A) Mail B) Processing C) Collection D) Disbursement ANSWER D
Date: September 19th, 2020
________ involves the strategic use of mailing points and bank accounts to lengthen mail and clearing floats. A) A direct send B) Concentration banking C) A lockbox D) Controlled disbursing ANSWER D
Date: September 19th, 2020
A ________ is an unsigned check drawn on one of a firm’s bank accounts and deposited into its account at another bank. A) direct send B) wire transfer C) depository transfer check D) preauthorized check ANSWER C
Date: September 19th, 2020
When the price of one commodity is the same wherever in the world the good is being sold when denominated in a particular currency, it is said the Law of ________ prevails. A) currency supply B) currency demand C) purchasing power parity D) one price ANSWER Answer: D
Date: September 19th, 2020
Which one of the following reasons for violations of the Law of One Price is the most obvious? A) tariffs on imports B) banking rules C) industrial policies D) exchange rate controls ANSWER Answer: A
Date: September 19th, 2020
A ________ is a telegraphic communication that, via bookkeeping entries, removes funds from the payer’s bank and deposits them in an account of the payee’s bank. A) direct send B) wire transfer C) depository transfer check D) preauthorized check ANSWER B
Date: September 19th, 2020
In the absence of pure competition, firms who segment markets may be able to charge different prices in different countries for the same good. This practice is known as ________. A) mark to market B) interest rate arbitrage C) pricing to market D) speculation ANSWER Answer: C
Date: September 19th, 2020
The version of purchasing power parity that states the exchange rates will adjust to equalize the internal and external purchasing power of a currency is known as the ________. A) relative purchasing power parity B) equilibrium purchasing power parity C) absolute purchasing power parity D) real exchange rate equilibrium ANSWER Answer: C
Date: September 19th, 2020
Within Germany, what is the name for the power of a U.S. dollar when it is used to purchase an amount of goods and services? A) internal purchasing power B) external purchasing power C) absolute purchasing power parity D) relative purchasing power parity ANSWER Answer: B
Date: September 19th, 2020
The theory of relative purchasing power parity states that, between two nations, the ________. A) inflation rates are unrelated B) exchange rate differential reflects the inflation rate differential C) inflation rate is smaller in weaker currencies D) the interest rate is greater than the inflation rate during depreciations ANSWER Answer: B
Date: September 19th, 2020
