Ratio interaction refers to A) using multiple ratios to make a decision. B) the way ratios are affected by managerial decisions. C) how ratios affect managerial decisions. D) the effect one ratio has on another. E) when a ratio raises a red flag for analysts. ANSWER D
Date: September 19th, 2020
Which type of ratio measures how effectively the firm uses its resources to generate income? A) Activity B) Liquidity C) Profitability D) Leverage E) Market ANSWER C
Date: September 19th, 2020
If ________ didn’t hold, the price of goods would change because merchants would buy cheap goods and avoid the expensive ones. A) Purchasing power parity B) Arbitrage C) Exchange rates D) Law of one price ANSWER A
Date: September 19th, 2020
Which type of firm would benefit the most from a “basket” type of inventory management system? A) “Category-killer” office supply stores B) Aircraft manufacturers C) Defense contractors D) Public accounting firms E) Automotive manufacturers ANSWER D
Date: September 19th, 2020
When would the “return on equity” equal the “return on assets”? A) Whenever the debt to equity ratio is one B) Whenever the debt ratio is zero C) Whenever a firm has positive net worth D) Whenever the firm has positive net worth and positive net income ANSWER B
Date: September 19th, 2020
The inventory method that relies on deliveries coming right before they are needed is: A) Just-in-Time B) Basket C) LIFO D) FIFO ANSWER A
Date: September 19th, 2020
Carrying costs per unit are $3.00. An average order contains 200 units. According to the economic order quantity model, what are total carrying costs? A) $300 B) $67 C) $600 D) $400 E) $565 ANSWER A
Date: September 19th, 2020
What is the maximum net profit to a speculator with $1 million if interest rates on 1-year Treasuries are 6% in France, 4% in the United States and the exchange rate is expected to change from today’s rate of 2Fr/$ to 2.1Fr/$ in 1 year? A) $1,060,000 B) $1,005,683 C) $1,040,000 D) $1,050,000 E) $1,009,524 […]
Date: September 19th, 2020
A theory stating that changes in inflation rates between two countries cause exchange rates to adjust is A) interest rate parity. B) exchange rate parity. C) relative purchasing power parity. D) absolute purchasing power parity. E) None of the above ANSWER C
Date: September 19th, 2020
________ is the act of trading to profit from a violation of the law of one price. A) Relative purchasing power parity B) Arbitrage C) Absolute purchasing power parity D) Purchasing power arbitrage ANSWER D
Date: September 19th, 2020
