Multiple Choice questions: securities, stocks, promissory notes and more
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SWIFT's implementation of the "smart card" is expected to
a.decrease the likelihood of electronic fraud.
b.remove the need for secret information to be sent through mail.
c.guarantee the identity of the sender.
d.all of the above
A Just-In-Time (JIT) inventory management program has all but which of the following requirements?
b.large safety stocks
c.close ties between suppliers, manufacturers, and customers
d.minimizing inventory levels
Cash flow does not rely on which of the following?
a.the payment patterns of customers
b.the monetary policy of the Federal Reserve
c.the speed at which suppliers and creditors process checks
d.the efficiency of the banking system
The owner of a call has
a.the right and the obligation to buy an asset at a given price.
b.the right and the obligation to sell an asset at a given price.
c.the right but not the obligation to buy an asset at a given price.
d.the right but not the obligation to sell an asset at a given price.
In managing cash and marketable securities, what should the manager's primary concern?
a.Maximization of profit
b.Maximization of liquid assets
c.Acceptable return on investment
d.Liquidity and safety
Which of the following securities represents an unsecured promissory note issued by a corporation?
a.Certificates of deposit
d.Money market fund
Question 7 4 points Save
The intrinsic value of a warrant to buy 5 shares of Merton stock at $55 per share is $20. What is the current market price of Merton stock?
d.none of the above
Massa Machine Tool expects total sales of $10,000. The price per unit is $5. The firm estimates an ordering cost of $7.50 per order, with an inventory cost of $0.70 per unit. What is the optimum order size?
Money market funds
a.are modeled after money market accounts.
b.are insured up to $100,000.
c.have a minimum balance of $2,500.
d.earn competitive market rates of return.
The floor price of a convertible bond cannot fall below
a.the conversion ratio.
b.the conversion price.
c.the conversion premium.
d.the pure bond value.
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