150,000+ ESSAYS

Find more results for this search now!

Need a Brand New Custom Essay Now?  click here

FIN 200 Week 8 CheckPoint Week Eight Quiz

Uploaded by ddscoolz on Feb 22, 2013

1) Ideally, which of the following type of assets should be financed with long-term financing?
A. Fixed assets and temporary current assets
B. Fixed assets only
C. Fixed assets and permanent current assets
D. Temporary and permanent current assets

2) A "normal" term structure of interest rates would depict
A. long-term rates higher than short-term rates.
B. short-term rates higher than long-term rates.
C. no general relationship between short- and long-term rates.
D. medium rates (1-5 years) lower than both short-term and long-term rates.

3) Some analysts believe that the term structure of interest rates is determined by the behavior of various types of financial institutions. This theory is called the
A. market segmentation theory.
B. expectations hypothesis.
C. liquidity premium theory.
D. theory of industry supply and demand for bonds.

4) The term structure of interest rates
A. plots returns for securities of different risk.
B. changes daily to reflect current competitive conditions in the money and capital markets.
C. shows the relative interest spread between bonds with different risk ratings such as AAA, AA, A, BBB, etc.
D. depicts interest rates for T-bills over the last year.

5) Cash flow does not rely on which of the following?
A. the monetary policy of the Federal Reserve
B. the payment patterns of customers
C. the speed at which suppliers and creditors process checks
D. the efficiency of the banking system

6) One of the first considerations in cash management is
A. synchronization of cash inflows and cash outflows.
B. to have as much cash as possible on hand.
C. profitability.
D. to put any excess cash into accounts receivable.

7) Hedging
A. increases risk.
B. is a way to protect your accounts receivable position.
C. is a legal agreement to buy or sell a financial futures contract.
D. can be carried out with a futures contract.

8) Assuming that we can earn a 13.5% return on accounts receivable, which of the following actions to finance an increase in our accounts receivable balance would be optimal?
A. a decrease in inventories which are earning a 17.6% return.
B. a reduction in marketable securities which are earning a return of 14.2%.
C. an increase in bank loans that would cost us 11.5%.
D. an increase in accounts payable that would cost our firm 15%.

Sign In Now to Read Entire Essay

Not a Member?   Create Your FREE Account »

Comments / Reviews

read full essay >>

Already a Member?   Login Now >

This essay and THOUSANDS of
other essays are FREE at puxobik.

Uploaded by:   ddscoolz

Date:   02/22/2013

Category:   Business

Length:   2 pages (384 words)

Views:   2140

Report this Essay Save Essay
Professionally written essays on this topic:

FIN 200 Week 8 CheckPoint Week Eight Quiz

  • Process of Business Research

    and provided greater opportunities for something to go wrong. Each alternative was equal in function and longevity, but the secon...

  • Income Inequality News Analysis

    In seven pages income equality is considered in an examination of post September 2000 Business Week and Fortune business journals....

  • Exercise: Baseline Study

    long-term - when taking on an exercise program maintain much more commitment than their counterparts who have no specific directio...

  • Average Weekly Hours Students Study

    going into statistical explanations, every empirical study establishes a confidence level that reports how much confidence the res...

  • "Fairness" in Pay Inequities

    are paid substantially less for comparable work and responsibilities compared to the private sector in the job families analyzed" ...

  • The Pros and Cons of The Four Day Work Week

    Utah is one of the few states to mandate the four day work week for its state employees (Berman, Bowman, West & Wart, 2009). It is...

  • Stanford Prison Experiment

    This is a controversial research study because of the trauma the participants experienced. On day 1, one participant had to leave,...

  • A Personal Plan for Losing Weight

    This is an experiment intended for a 170 pound female age forty two in order to realize weight loss that is realistic and involves...

  • Articles on Credit Markets

    In six pages a week's worth of articles that were featured in The Wall Street Journal of March 5, 2001 in its 'Credit Markets' sec...

  • Research and Obervation in the Household

    The effectiveness of sound reasoning, observation and research are often overlooked. In this paper, six weeks' worth of household ...

View more professionally written essays on this topic »