Which of the following are commonly used for financing accounts receivable?
I. Factoring
II. Issuing credit cards
III. Revolving bank loans
IV. Letters of credit
The term "collection float" is defined as the delay between the time the payor:
Which of the following instruments is sold at multiple price bid auctions?
The credit risk in the settlement of a Fedwire is borne by the:
A company can use all of the following documents to establish a relationship with a bank EXCEPT:
A U.S. company that is expecting to receive a payment of C$1,000,000 purchased a put option of C$1,000,000 at a strike price of 1.75 C$/US$. Two days before the receipt of the payment, the spot rate is 1.85 C$/US$. To maximize its receipt of dollars, the company should do which of the following?
Which of the following would be the most efficient method of reducing the number of cross-border payments between two units of a company?
Measurement of a company's liquidity includes the calculation of all of the following EXCEPT:
Which of the following statements is true about a forward foreign exchange contract?
True statements about the open account method of trade payment include which of the following?
I. A bank guarantees payment.
II. It is the most common type of trade credit.
III. A periodic credit review of each customer is required.
IV. The customer makes equal monthly payments.
Which of the following can be used for monitoring accounts receivables?
I. Aging schedule
II. Credit terms
III. Days' sales outstanding
IV. Receivables balance pattern
When investing in commercial paper, the investor's primary consideration should be which of the following?
A cash manager invests in Treasury bills for which of the following reasons?
Components of a field banking system include which of the following?
I. Local bank
II. Concentration bank
III. Lockbox bank
