. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .& p* B9 l) j) P# d6 N& g2 ^6 ~
A. imports automatically increase3 v/ M: T/ D( d, j8 w6 T$ `2 e# J0 z
B. currency automatically depreciates& ?/ g% r0 U, e. Y0 M1 Q. E0 V3 s
C. exports automatically decline
* T x; B- W: V" K D. currency automatically appreciates! E7 ~& t- ]- l3 M
2. Which of the following statements is not true of accounting? ______.6 x' V7 Q" U, b3 h% a
A. Accounting is language of business0 p# p! C/ S: v
B. The user of accounting includes business, government, nonprofit organizations and individuals.$ E& k) ~! P0 I- V9 H
C. Accounting is useful for decision making g$ }+ d' i! y2 H8 B8 k
D. Accounting is an end rather than a means to an end: N5 d! B% ?* [4 {# }/ R
3. The term foreign exchange is best defined by the following statement: it is ______.
$ o3 x5 F- T, u! m) k- w: o2 q! ^ A. the rate of exchange between two currencies* a8 B) a6 ]" O3 U( `
B. synonymous with currency exchange
, }/ y; u1 I" V0 I! q) z C. the place in which foreign currencies are exchanged
- V5 D- g4 o0 S/ P) J5 ]4 F D. an instrument such as paper currency, note, and check used to make payments between countries% Z) u( ^" {: M
4. What is Asset Allocation? ______.
0 s! T/ ]: A" Q A. Buying assets of different types, risks, and potential returns
/ t. [$ n2 ~+ l6 e7 F B. Buying assets with more than one brokerage account5 s% {/ E! I: k$ S/ m( G
C. The ability to buy mutual funds. y( D& u5 g0 S( ~$ R7 n
D. Buying stocks for the long term
1 b) _- ]9 X: P, F# @ 5. External users of financial accounting information include all of the following except .6 L6 G6 t" J6 {- \! H2 Y! c
A. suppliers* _$ W9 ^- @6 p7 l6 ~
B. line managers
3 y! h. v+ X, X: [* F' E C. general public" |9 j% I3 D9 n. g2 P
D. creditors, R8 N2 k" p+ Q1 L
6. CAPM is short for .7 Z9 v8 b. Z1 q \6 e/ b
A. Capital Asset Pricing Model) D/ P$ ] |& i* {
B. Cash Added Price Matrix
/ [9 \6 M$ V$ W9 U C. Capital Asset Pricing Matrix
! G: O @3 X9 p" e4 E- m- ] D. Cost and Price Model( h4 D$ z, I7 L/ \
7. Liquidity measures the ______.
+ {7 s4 A0 R: K! W* v' [, B- _ A. value of an asset
+ c5 z- n7 Z, H B. ease with which an asset can be exchanged
+ n3 K* A! W; i R C. usefulness of an asset! v! H! |' X9 S( E4 E* o
D. economic and monetary reliability of an asset compared with other assets
. n; y/ B( a' [7 @1 l- F 8. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.
# i4 l, c, r' i8 O) ? A. documents... the credit, t, q5 X% e) c/ K0 g. S) o7 D! ?; R
B. merchandise... the contract1 b+ S, |3 M B+ j
C. documents... the contract
" O1 s; l6 g/ z" N7 L D. merchandise...the buyer ordered
/ k; c/ E1 b4 a7 q- f 9. A barter economy is one that does not possess _______." {, i+ j. Q6 V" k2 J4 _
A. any wealth/ t3 S1 ?6 s& @
B. printed currency+ O6 @( n* |; [; s0 A7 f: C
C. a medium of exchange
6 L- Y, N v4 j9 d4 {) O8 j/ D4 h D. gold" ~4 L- f( q! Z! {- H, J$ Q: j, J# g5 t
10. Which of the following is not true of airway bill? ______.; \, b; L1 H) r- A
A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goods
! g% A1 P: d" c0 r+ ?; F! _0 @( W B. Airway bill is a document of title to the goods
v4 Y+ o; N" D& I2 j9 I) E0 | C. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flight
6 Z$ e, @4 ]2 Y% U, `+ u D. None of the above |