1. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .
; I3 l0 a2 e+ C. z' n A. imports automatically increase
! ]' G0 Z! @& @- b B. currency automatically depreciates
1 s5 }- W# C5 x/ \ C. exports automatically decline$ @& n9 v' M7 K Y. c& S
D. currency automatically appreciates
3 p6 @- g( g- R* A 2. Which of the following statements is not true of accounting? ______.
7 t \( _; _: h+ s, b A. Accounting is language of business
. i7 s: A* L V$ d, { B. The user of accounting includes business, government, nonprofit organizations and individuals.
3 y. z: A* g0 X! A% m8 W& M# y( S C. Accounting is useful for decision making
8 ~" }* n6 q0 y- r$ X3 \7 L* b2 L+ o D. Accounting is an end rather than a means to an end4 b, S$ Y8 }) U9 ]& s
3. The term foreign exchange is best defined by the following statement: it is ______.
& t1 n* p; a9 q- e5 S2 s* B# [0 c4 M A. the rate of exchange between two currencies, M( |! |9 j6 k: p w n
B. synonymous with currency exchange4 q; j* G! Z _! }
C. the place in which foreign currencies are exchanged) m0 @& Z. b9 C1 k/ R9 i0 W
D. an instrument such as paper currency, note, and check used to make payments between countries. J$ S! x( I2 P5 a. a, p; E c
4. What is Asset Allocation? ______.5 c# W( P5 a$ w8 D3 q0 h4 ]* ~* G- z E
A. Buying assets of different types, risks, and potential returns
6 p9 t0 f0 }4 x" J B. Buying assets with more than one brokerage account: _- H# f, _0 I5 F- R
C. The ability to buy mutual funds# |% [5 H/ r- z1 G, x4 C
D. Buying stocks for the long term" l8 g, X7 F! E
5. External users of financial accounting information include all of the following except .- h0 C: k- y- F$ p/ H# ~
A. suppliers
; E3 w0 H% ^/ r- f( N8 X B. line managers
7 U: w/ x9 F" g- A0 \+ t8 V C. general public4 \* y, R; Z! @: M" W9 j% h. ]
D. creditors
) n) W% N' p4 x+ M$ b 6. CAPM is short for .
6 h' m, |, Y! O' O4 L! z& ~$ l A. Capital Asset Pricing Model
* {) _1 }6 T9 j5 d6 j5 k4 V B. Cash Added Price Matrix& y2 i _# S- G, i' Q
C. Capital Asset Pricing Matrix( @* F3 _* m- E% W' g) {
D. Cost and Price Model
8 e0 z' C+ m) s- o/ V 7. Liquidity measures the ______.! o1 G& T5 u. w- T0 w
A. value of an asset6 |7 [' q) k6 O; z5 p7 E
B. ease with which an asset can be exchanged
0 e4 [3 L6 } [/ c1 F C. usefulness of an asset
; P' n. {( {* H" W h3 { D. economic and monetary reliability of an asset compared with other assets+ P9 D8 r# c9 m" J
8. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.
/ i$ c( |9 K r o# V4 w1 n A. documents... the credit! P; B0 e1 T4 [1 U$ C1 q
B. merchandise... the contract
8 w! f% \, U4 H7 f) V1 X C. documents... the contract
/ W5 q" m6 P$ R) D% S! h D. merchandise...the buyer ordered9 ~9 @# J. { d% ] @* J
9. A barter economy is one that does not possess _______.
$ ~0 W6 A5 c# w' j& U A. any wealth2 M, q5 @9 I2 X! i8 D2 L% i
B. printed currency
/ v9 M' I6 Z" J- \! m6 g @ C. a medium of exchange Y/ V6 I. n! p: y$ H
D. gold
4 ?8 e" K/ K' [0 D 10. Which of the following is not true of airway bill? ______.
, D' b: `2 {- O; ]9 b A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goods
) ^: U5 p& q/ N+ K- T2 Y B. Airway bill is a document of title to the goods v7 ~- U1 ^0 m6 s. F! z: g) H9 y
C. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flight( e5 g. i/ _5 n2 Y, W a. G
D. None of the above |