Delaying the payment of accounts payable in order to improve cash management is known as ________. A) ACH transfers B) stretching payables C) credit scoring D) lockbox system ANSWER B
Date: September 19th, 2020
When managing accounts receivable, a good strategy would be to ________. A) send the accounts to a collection agency to extract payments B) tighten the credit terms to force the customer to pay on time C) offer cash discount without losing sales and imposing burden on customer D) make frequent personal visits to the customer […]
Date: September 19th, 2020
________ refers to funds that have been dispatched by a payer but are not in a form that can be spent by the payee. A) Banker’s acceptance B) Float C) A direct send D) Lockbox ANSWER B
Date: September 19th, 2020
What is the name of the ratio of a price level at one point in time to the price level in a designated base year? A) bid-ask spread B) reserve requirement C) percent spread D) price index ANSWER Answer: D
Date: September 19th, 2020
________ float is the delay between the receipt of a check and the actual deposit of it into a firm’s account. A) Disbursement B) Deposit C) Processing D) Clearing ANSWER C
Date: September 19th, 2020
Which one of the following would be an answer to why the forward exchange rate is an unbiased predictor of the future spot rate? A) The forward rate is greater than the conditional expectation of the future spot rate. B) The forward rate equals than the conditional expectation of the future spot rate. C) The […]
Date: September 19th, 2020
Commercial paper is a short-term loan issued by commercial banks that have variable yields based on size, maturity, and prevailing money market conditions. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
To construct the uncertain yen-denominated return from investing one yen in the Swiss franc, what is your first step? A) convert from yen into Swiss francs in the spot market B) convert from Swiss francs into yen in the forward market C) invest in the Swiss money market D) convert from Swiss francs into yen […]
Date: September 19th, 2020
A major decision confronting a business firm when purchasing marketable securities involves a trade-off between the opportunity to earn a return on idle funds during the holding period and the brokerage costs associated with the purchase and sale of marketable securities. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
To determine the risk premium associated with an asset’s expected return, two components of the return are usually cited, only the first, the covariance of the asset’s return with the market portfolio, is used, because ________. A) the risk associated with the asset depends on the market risk B) it is the only part of […]
Date: September 19th, 2020
