61. The statement of cash flows is designed to assist users in assessing each of the following, except .
% M1 h. j) C3 S- ~& G' f A. the ability of a company to remain solvent- o) e9 a. _& {: A7 R# |0 ]
B. the company’s profitability+ J' H% c) Y- q% W) E
C. the major sources of cash receipts during the period' Z- Q; U0 C5 G5 K2 Z
D. the reasons why net cash flows from operating activities differ from net income$ I2 c! V' N: A3 M5 u
62. Which of the following is a main policy tool of the central bank? ______.
! ^# ~ e& Z. T0 E A. Taxation- z0 L5 Z: D3 s2 F5 s; W4 M
B. Open market operation3 Q& C: R* p: W t
C. The prime rate/ R2 m* e; R, F5 r
D. The money supply4 l& r) P( |% F, W& w
63. Which of the following is not included in the statement of cash flows, or in a supplementary schedule accompanying the statement of cash flows? ______.
/ N+ C: t. h w; N A. Disclosure of the amount of cash invested in money market funds during the accounting period2 Z! {; C! E6 v9 ]+ X/ R/ }) h
B. A reconciliation of net income to net cash flows from operating activities N ?% G5 C5 c& G5 }
C. Disclosure of investing or financing activities that did not involve cash. W5 u2 i- |% ^) ~, S9 O+ v, [3 Q
D. The amount of cash and cash equivalents owned by the business at the end of the accounting period) c- p- P9 [4 H6 W* W5 q" l. f
64. The yield on bank reserves is equal to ______.$ V v: o4 w5 G- G+ {, R
A. the discount rate8 X, ?6 b/ A% ?2 O) J4 d" p2 \1 y
B. the prime rate8 [. Q& K0 W/ I, k& q$ F
C. a specific rate decided by the central bank
0 N" p" }! r5 g; U D. 0 percent6 d) A4 ], I. T8 f4 G
65. The feature of APT that offers the greatest potential advantage over the simple CAPM is the .
% J5 i9 w X: I" a B A. identification of anticipated changes in production, inflation, and term structure of interest rates as key factors explaining the risk-return relationship! x5 \* F. Z l! g& V
B. superior measurement of the risk-free rate of return over historical time periods C( O2 x, c- c7 q' \3 A
C. use of several factors instead of a single market index to explain the risk-return relationship
& ^/ u2 Q% ^4 N) \5 J6 b D. variability of coefficients of sensitivity to the APT factors for a given asset over time
; v( Y f1 Q$ c- N" p 66. In documentary collection, the exporters present the documents to ______ after the goods have been shipped.+ Q; {. o6 x0 T/ l6 B! V4 ^$ a
A. the remitting bank
9 H+ N' q% q/ O7 O B. the collecting bank9 p$ d# w Q" \$ a& z
C. the reimbursing bank
8 H* x, s- B, X' [; ~/ c0 j D. the opening bank* O: |9 I5 ]2 @& V' |1 z5 \6 U
67. If a bank has ______ rate-sensitive liabilities than assets, a ______ in interest rates will reduce bank profits, while a ______ in interest rates will raise bank profits.$ Z- I: r9 r" P' A: S; O9 }1 l
A. fewer...rise...decline! i0 h! R8 {1 v4 l( y* s
B. more... decline... rise
4 q4 \$ x% O6 u" q C. more... rise... decline6 j% p: ]. N/ r3 T2 v
D. fewer...rise...rise
5 P, q+ ?. X, v& `" I; ] 68. An L/C applicant is unhappy with the goods he receives. He is due to pay a term bill of exchange. Which of the following course of action could take place? ______., ~" h4 Q6 m8 q: G" e) K
A. He is obliged to pay as the documents were in order+ y% G0 W% Q1 h( C! P9 p
B. He can instruct the issuing bank not to debit him
( I4 ]+ P! f q! k/ g$ |0 J C. He can pay a reduced amount to compensate for the inferior goods
3 r; h) `* Y8 f3 S! G6 ~9 f D. He instructs the issuing bank to return the documents with a payment refusal statement to the beneficiary# t$ Y' u7 j% T. Y3 D, x( J/ ^- r5 C
69. Which of the following would be considered a Eurodollar? .
. l' h g+ P; w$ U# e! L A. A U.S. dollar in a bank outside the U.S.
& o5 R* W" h. k B. A U.S. dollar held as an international reserve asset by a foreign central bank
# M' M) i- Q J0 x# e, T: D C. A Federal Reserve notein the pocket of a tourist visiting Europe
0 y1 _- g8 ~9 r( O, G D. None of the above
- Y9 p! F3 }' X' L 70. Which of the following is usually least important as a measure of short-term liquidity? .
% s! B* `( {& r, p2 T- m A. Quick ratio( i3 C3 J! J' O+ M$ b
B. Current ratio7 ^9 Q6 d- S8 y: r# i7 i) s) ^
C. Debt ratio, H3 h+ a3 f, I- T) E
D. Cash flows from operating activities |