A contract for the purchase or sale of a currency where delivery will take place at a
future date is called a forward exchange rate.
Compound interest is interest earned on interest in addition to interest earned on the
principal.
A non-optimal capital structure may lead to higher financing costs.
Asset management ratios indicate the ability to meet short-term obligations to creditors
as they come due.
Precautionary motives for holding cash include holding funds to take advantage of
unusual cash discounts for needed materials.
The liquidity premium is the compensation that investors demand for holding securities
that cannot easily be converted to cash without major price discounts.