1. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .
+ b3 n# u$ `' n! g+ E4 F A. imports automatically increase
# j { M: Y* O2 } B. currency automatically depreciates
! Q* @, Q. H' I; M2 P% k C. exports automatically decline
9 ?. z$ U- l9 n( i1 G, A D. currency automatically appreciates
, l+ n9 e+ Y4 u; o% G 2. Which of the following statements is not true of accounting? ______.
# H4 W5 h: Y) X# O$ m y9 q A. Accounting is language of business
K+ I8 [0 i4 r0 m4 V B. The user of accounting includes business, government, nonprofit organizations and individuals.9 c: d1 l8 o' x) O- t, ]. [: Z ~6 v
C. Accounting is useful for decision making8 e' Y/ [; l( [6 ~. n2 N; h$ E
D. Accounting is an end rather than a means to an end
" z; v, D( G6 t5 B7 \ 3. The term foreign exchange is best defined by the following statement: it is ______., Z$ t* M+ {8 I% F
A. the rate of exchange between two currencies1 O, T: M; G( K' i5 J# o
B. synonymous with currency exchange
- U. W, I W* B- o3 J; h$ ? C. the place in which foreign currencies are exchanged' }2 l* C9 [1 W3 m3 r
D. an instrument such as paper currency, note, and check used to make payments between countries L) i% p4 v, V3 t, h, v1 ^) W# Y: E
4. What is Asset Allocation? ______.
- T# Z# G6 D# ^$ | A. Buying assets of different types, risks, and potential returns
2 i6 T$ e9 L' S2 O B. Buying assets with more than one brokerage account+ U0 u, x- c7 E7 z
C. The ability to buy mutual funds7 h$ e/ \) ?- O' P N
D. Buying stocks for the long term) `) p+ |9 h' ~$ x( e- u4 N; g3 T
5. External users of financial accounting information include all of the following except .
* O, ?4 Y; m8 J( S8 `) ] e A. suppliers
- s; N# _/ T; V: G. M( v* E- [& X0 p B. line managers
# S$ ?9 X! _" n C. general public
. y8 i. ]# O7 H5 L# i0 w8 ~* [ D. creditors
u: H* B: P* _. `: e 6. CAPM is short for .& Z) b r$ k* k$ v$ c3 |
A. Capital Asset Pricing Model! S2 I8 X# a7 x
B. Cash Added Price Matrix8 i7 F4 @) a ?" ?9 `) m
C. Capital Asset Pricing Matrix
; t, M" @ x5 ?/ g: m1 v& n2 B+ ` D. Cost and Price Model2 k+ g1 O: }( T; k7 t5 h" g
7. Liquidity measures the ______.9 s# u- t T. |3 ^% ?' Q$ ?
A. value of an asset, t @1 ]/ c& S; Y4 x6 ?% @; D
B. ease with which an asset can be exchanged
+ V! B- z7 F | C. usefulness of an asset- w1 B) f- h; X/ p; [0 V
D. economic and monetary reliability of an asset compared with other assets
4 W" ]$ \ z5 D9 M7 A 8. In a letter of credit transaction, the bank pays the seller against ______ which agree with______.; \+ L7 s: d2 h; L5 |. W ^
A. documents... the credit
& t* y4 B% ]3 H8 b3 e4 H B. merchandise... the contract7 V; U( R* u7 ~. a% F' R
C. documents... the contract
- w9 f. X' l) b D. merchandise...the buyer ordered8 c2 R9 }3 o/ b1 l/ o1 }& d
9. A barter economy is one that does not possess _______.
7 D& C4 J4 B& X+ [ S5 Q1 }- w) M A. any wealth
; x i8 X0 F; }6 u f B. printed currency
3 |. O" R- z1 `: w& v C. a medium of exchange
6 v. m+ J, n8 E7 x9 c4 `0 x* g# E D. gold* ~& d, h$ T- ?0 y4 @
10. Which of the following is not true of airway bill? ______.( S0 E# O' P( U- d
A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goods
$ w$ P( z9 l9 |( B6 U: k) Z B. Airway bill is a document of title to the goods% i0 ]3 `4 n6 ^- @ |% C1 c
C. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flight T! \+ W3 f( M" R6 `
D. None of the above |