1. When a country runs a foreign trade deficit under a flexible foreign exchange rate system, its .
2 I, @2 P% s9 X0 p% _( r, ?7 j A. imports automatically increase3 G9 P" P/ K1 k9 [( V
B. currency automatically depreciates
( u4 |# O! l# o e% M: ` C. exports automatically decline
. |, q# F5 n: Y% Y& K( G" `$ ? D. currency automatically appreciates
# Z3 y6 [, M5 }1 E& h 2. Which of the following statements is not true of accounting? ______.% E- f7 N3 z- B( U2 @
A. Accounting is language of business
- |8 `% {2 P6 Y, Q/ H! l B. The user of accounting includes business, government, nonprofit organizations and individuals.) Y5 O) m+ L/ T/ u6 q) \8 k: D
C. Accounting is useful for decision making4 t2 N' _5 R9 N6 v9 |+ J3 f6 U
D. Accounting is an end rather than a means to an end% E+ w' t; C# ^. `3 F3 }
3. The term foreign exchange is best defined by the following statement: it is ______.9 x0 a' ?& P) [$ ^# c2 Y, D
A. the rate of exchange between two currencies
5 N" q u' ~9 u7 u3 W; B% T B. synonymous with currency exchange! D6 w0 W) G9 K0 \8 a& l1 S
C. the place in which foreign currencies are exchanged6 J7 D6 _# e3 r8 o( x3 F
D. an instrument such as paper currency, note, and check used to make payments between countries8 A9 ~2 U4 x; H
4. What is Asset Allocation? ______.
9 _$ G* Y! G+ _% w- R/ w" J" e0 G/ c A. Buying assets of different types, risks, and potential returns
& L1 k2 E$ w9 e/ w7 x: C B. Buying assets with more than one brokerage account C6 b% m* ?) }" N1 i$ j
C. The ability to buy mutual funds
4 c& M8 v8 B) ]( O- G/ i D. Buying stocks for the long term9 |' O7 [& p+ j/ Z" h. J! M
5. External users of financial accounting information include all of the following except .
- P. ]& D ` U) c3 ^" H A. suppliers9 O5 n# G+ Y/ }
B. line managers
% x% @6 P3 v+ F* x! d) Q* U C. general public! N: F9 h8 F) V3 `# X E, L
D. creditors. r9 x$ B+ s: I r7 c& j: M
6. CAPM is short for ., ~& o# j2 P* t" Q& K0 ^* P" E `
A. Capital Asset Pricing Model
& ?6 C. t0 f4 e B. Cash Added Price Matrix
2 \5 _0 B9 M1 j+ m3 O1 _ C. Capital Asset Pricing Matrix- d& i' |2 Z; @
D. Cost and Price Model r2 i O1 o) f7 h) W
7. Liquidity measures the ______.+ _- e8 D3 } K- j' ^9 M
A. value of an asset
9 e+ Z1 M& @6 j4 O. n/ x B. ease with which an asset can be exchanged
8 a; w ^( ^2 _) V$ [- D C. usefulness of an asset
2 N' B( \; R, |! g7 F+ N% ~8 N8 M* E D. economic and monetary reliability of an asset compared with other assets8 @8 [3 ^8 H4 X( a& s' l
8. In a letter of credit transaction, the bank pays the seller against ______ which agree(s) with______.$ {# t8 P9 L: O, a
A. documents... the credit
7 i* G. U1 N9 }+ |( e) { O B. merchandise... the contract
- O5 @' C6 W* U( e# T7 c C. documents... the contract- m7 c, }# m- ?+ D4 L9 D0 I( j
D. merchandise...the buyer ordered
7 z& P( x9 g% c6 ?5 V5 M# k4 p 9. A barter economy is one that does not possess _______.
8 h# `4 v$ S+ s5 ?; H. |9 | A. any wealth
& G% V5 b* S O. E0 K' Q1 k B. printed currency# R" d- P2 D8 l; o+ S( j) ?4 `
C. a medium of exchange
) F/ A# h' b2 z& E/ D D. gold
+ X$ Y# G4 h, M6 h& U/ ^! q' v6 L 10. Which of the following is not true of airway bill? ______.* f& g$ Q! w$ [' o3 J7 d9 Y! ^
A. When goods are delivered to the airline, the airway bill is signed by them or their agents as a receipt of the goods
3 i) d0 z/ `4 B B. Airway bill is a document of title to the goods% z: |$ h* v; }# w& s ]9 J
C. Airway bill may also provide evidence of despatch of the goods where it has been stamped indicating details of the relevant flight. X+ T3 f$ E, B6 {& ^
D. None of the above |