82. Which of the following payment terms eliminates the exchange risk, assuming the exporter invoices in foreign currency? ______.6 k2 X4 q3 n+ X8 Z A
A. Confirmed irrevocable documentary credit
- t l+ l. r3 L B. Open account4 i2 E% M+ J( O, Q/ |
C. Documentary collection D/A
9 U1 s h& } l6 L; ?8 f2 M/ P D. None of the above7 ^1 o# Y& x( e# l) U
83. ABC Co. Ltd. purchased a car for $ 12 000, making a down payment of $5 000 cash and signing a $7 000 note payable due in 60 days. Which of the following is not correct? ______.& S. Z! m1 t; D" y7 O" m( ` R
A. From the viewpoint of a short-term creditor, this transaction makes the business less solvent' [( K* R0 `: D- [; @$ M
B. Total liabilities increased by $7 000
) R8 L9 e8 x; ?/ k4 J9 Q9 v6 i' i C. Total assets increased by $12 0000 J7 ^ S c5 M, s/ X q7 U
D. This transaction had no immediate effect on the owner’s equity in the business
! f4 \( D2 h' O) ^6 m+ }3 ? 84. Which of the following terms of payment will entirely eliminate country risk? ______.7 C9 k5 J/ J' G: J6 r
A. Revocable documentary credits
0 I+ f! W7 a) L( W& V B. Confirmed Irrevocable documentary credits
5 K) h1 z0 V% U0 {8 b; N' A/ c C. Documentary collection D/P
$ b- p' W. ?7 O9 x& `$ g: l! a D. Documentary collection D/A" f8 A4 |2 |5 {6 v, C' A) X! E, h
85. The expiry date of a documentary credit is Sunday, 24 February, and documents have to be A presented to you. Which of the following is an acceptable presentation?______.
6 b+ z; _& B& C# e( F A. Presentation to you on Monday 25 February with the bill of lading dated 25 February( V1 ]! r! |# _4 `8 I
B. Presentation on Monday 25 February with the bill of lading dated Sunday 24 February
1 x5 S* c1 s( S6 m# K9 I- } C. Presentation on Tuesday 26 February with the bill of lading dated Sunday 24 February* r2 p5 [+ J1 d# ^
D. Presentation on Friday 22 February with the bill of lading dated Sunday 29 January$ T' ~0 h/ R v
86. What are the standard deviations of returns on Stocks X and Y respectively? ______.( {) b4 M% O- ]7 {( c! [8 I
A. 15% and 26%7 B% g* `2 ?) \% o! d B/ C" Y ~
B. 24% and 13%, N- N1 m: @( {+ `2 }, V, m) h0 G, D
C. 20% and 4%* x2 u4 O- P# v
D. 28% and 8%
( U& M) w! F3 m- c. n! K 87. Who makes the first presentation of documents under a transferable credit? ______." B( h2 C8 C/ R( }9 U! B: e( Q
A. Applicant- t. @( @6 j# r! |3 q" i
B. First beneficiary
# E6 z* _' k+ d8 o1 w# @8 S2 y C. Second beneficiary
; D* W1 P& W" \% t V! T4 z, X D. None of the above
% {; {2 G1 a7 K" B7 u! e 88. A transaction caused a $10 000 decrease in both total assets and total liabilities. This transaction could have been ______.& J7 W# m1 \9 g$ b! t! z
A. repayment of a $ 10 000 bank loan
% X2 `% x5 B" W6 C* y B. an asset with a cost of $10000 was destroyed by fire2 ~1 X; d# Q' K
C. purchase of a delivery truck for $10 000 cash
1 N B8 _" h8 n1 z/ p, p {, ?% N- P( S D. collection of a $10 000 account receivable |