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If a company can stretch its accounts payable without damaging its credit rating, it is
effectively ___________ its operating cycle.
a. increasing
b. reducing
c. not affecting
d. not able to determine.
e. none of the above
BP has an operating cycle of 120 days, an average collection period of 40 days, and an
average payment period of 30 days. Based on this information, BPs average age of
inventory is ________ days.
a. 80
b. 50
c. 90
d. 70
e. none of the above
Which of the following factors directly impact the level of interest rates?
a. risk
b. marketability
c. maturity
d. all of the above
The ___________________ Exchange (ICE) serves the global markets for agricultural,
credit, currency, emissions, energy and equity index markets.
a. Italian
b. Indianapolis
c. Istanbul
d. International
e. none of the above.
Almost all Treasury disbursements are made by:
a. checks drawn directly on the U.S. Treasury
b. check drawn against deposits at commercial banks in large cities
c. drafts drawn on member banks
d. checks drawn against deposits at Federal Reserve Banks
An efficient ______________ that is comprised of a central bank and a banking system
that is able to create and transfer a stable medium of exchange called money.
a. allocation system
b. banking system
c. monetary system
d. market system
e. none of the above
Which type of bond is currently prohibited from being issued in the United States?
a. bearer bonds
b. unregulated debentures
c. tax avoidance bonds
d. income bonds
An over-the-counter market trade occurs in the:
a. primary market
b. NYSE
c. third market
d. SEC
Paid-in-capital in excess of par represents:
a. the proceeds from the original sale of stock less its par value
b. the proceeds from resale of treasury stock less its par value
c. the current market value of the stock less what investors paid for it
d. the current book value of the stock less what investors paid for it
e. none of the above
If a firm has an operating cycle of 120 days and an average payment period of 20 days,
its cash conversion cycle would be:
a. 100 days
b. 140 days
c. 18 days
d. cannot be determined from this information
A partnership is a form of business organization when two or more people own a
business operated for profit.
One goal of the NYSE€Euronext merger is to cross-list shares on the two exchanges.
One of the most significant functions of the financial system is the creation of money,
which serves as a medium of exchange.
Empirical evidence shows that in countries where central banks are relatively
independent from their governments, there has been higher inflation and lower
economic growth rates than in countries where central banks are closely tied to their
governments.
About one-third, of the nation€s commercial banks are members of the Fed.
