Controlled disbursing involves the strategic use of mailing points and bank accounts to lengthen mail float and clearing float, respectively. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Controlled disbursing is a method of consciously anticipating the mail, processing, and clearing time involved with the payment process. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
What is the name given to the risk associated with an asset’s return arising from the covariance of the return on a large, well-diversified portfolio? A) covariance B) systematic risk C) idiosyncratic risk D) risk premium ANSWER Answer: B
Date: September 19th, 2020
What concept states that there is no systematic difference between the forward rate and the expected future spot rate, and that the expected forward market return is zero? A) unbiased predictor B) unbiasedness hypothesis C) uncovered interest rate parity D) unsystematic risk ANSWER Answer: B
Date: September 19th, 2020
Playing the float involves the strategic use of mailing points and bank accounts to lengthen mail float and clearing float, respectively. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The empirical evidence indicates that interest rate parity is the norm, especially during periods of financial market ________. A) arbitrage B) turbulence C) profit-taking D) tranquility ANSWER Answer: D
Date: September 19th, 2020
What is the market portfolio? A) the large, well-diversified portfolio that investors should hold according to finance theory B) the large, well-diversified portfolio without international securities C) the portfolio that represents a global portfolio D) the portfolio with strictly domestic securities ANSWER Answer: A
Date: September 19th, 2020
Explain the bid—ask spread in the external currency market? What will be an ideal response? ANSWER Answer: The bid-ask spread in the external currency market is the difference between the bid rate, which is the interest rate that the bank pays on its deposits and the ask rate, which is the interest rate […]
Date: September 19th, 2020
The risk that is associated with an asset’s return arising from the covariance of the return with the return on a large, well-diversified portfolio is known as ________ risk. A) business B) exchange rate C) market D) systematic ANSWER Answer: D
Date: September 19th, 2020
Assuming that a firm has done all it can to stimulate customers to pay promptly and to select vendors offering the most attractive and flexible credit terms, it can further speed collections and slow disbursements by taking advantage of the “float&qu existing in the collection and payment systems. Indicate whether the statement is true or […]
Date: September 19th, 2020
