Liberty BUSI 320 Chapter 8 Reading Assignment Answers Complete Solutions
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Some advantages of commercial paper are
Which one of these is NOT a category of commercial paper?
Foreign loan rates are often lower than U.S. loan rates which creates an incentive for US firms to utilize foreign borrowing.
Selling a Treasury bond futures a contract will result in a profit if interest rates go down.
The method of controlling pledged inventory in which the lender has a general claim on the borrower’s inventory is called a blanket inventory lien.
Which is not an example of events that cause lenders in commercial paper market to become risk-averse?
The 1968 Truth in Lending Act was intended to protect:
is the center of Eurodollar deposits
Goods in process used as collateral typically qualify a firm for a higher loan than raw material or finished goods.
Commercial paper represents a long-term, secured promissory note issued to the public in minimum units of $25,000.
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Bankers can oftentimes be hesitant to allow a term loan to affix to a single rate. Rather, they prefer the interest rate to change with .
Because there are so many ways to structure loan repayment schedules, no one formula is applicable for computing the APR
The average customer can expect to pay how many points above the prime rate?
Commercial paper may be issued at below the
Jones Company sells his receivables to the bank without recourse. Which of the following are true regarding this arrangement?
In the last decade there has been a sharp decline in the use of the term loan
A cash flow that provides only one payment could be considered an annuity. (True or false)
A company that has a positive net credit position is considered a ___________ of trade credit.
Compount interest can be described as:
A decrease in the interest rate will:
During tight money periods banks charge _________ the primary rate.
Expressed in graphical form, the line showing the future value will ___________ if the number of periods increase.
The factors needed to compute the number of periods are:
For an annuity, an increase in the number of periods will _________ the present value.
The future value of an amount is directly proportional to the future interest rates. (True or false)
An increase in the interest rate will:
An increase in the number of periods will ____________ the present value of a single sum.
In time value of money problems, a period could be:
Jones Company accepts bank credit cards. Which of the following is true regarding this arrangement?
Jones Company sells his receivables to the bank without recourse. Which of the following are true regarding this statement?
Of the following, which one would have the lowest collateral value to a bank or lender?
Of the following, which would have the lowest collateral value to a bank or lender?
The present value of an annuity is the value today of a series of equal payments to be received in the future:
To find the present value of a series of equal payments, what table or procedure would you use?
What factors must be known in order to calculate the current value of an annuity?
When using the time value tables, the interest factor that is looked up (i.e. PVIF, PFVIFA, FVIF, FVIFA) is then _____________ the dollar amount of the known variable (PV, PMT, or FV)