Which Of The Following Is Not A Method For Controlling Pledged Inventory?

100. The extent to which inventory financing may be used depends on
A. marketability of pledged appurtenances.
B. toll stability of appurtenances.
C. perishability of appurtenances.
D. all of these.

101. Which of the post-obit is not a method for lenders to control pledged inventory?
A. Blanket inventory liens
B. Trust receipts
C. Warehousing
D. Factoring

102. Which method of decision-making pledged inventory provides the greatest degree of security to the lender?
A. Blanket inventory liens
B. Overall inventory liens
C. Trust receipts
D. Warehousing

103. Which of the following is not a method for controlling pledged inventory?
A. Coating inventory liens
B. Floor planning
C. Public warehousing
D. Each of the above is an inventory command method

104. Hedging refers to
A. avoiding high-run a risk investment opportunities.
B. a transaction that reduces risk exposure.
C. the aforementioned thing as asset diversification.
D. avoiding the financial futures market.

105. The financial futures market
A. is a place in Chicago where future stocks are traded.
B. allows for the delivery of financial instruments at a time to come point in time.
C. is of particular value to small investors in managing their portfolios.
D. two of the above.

106. Firms exposed to the risk of interest rate changes may reduce that run a risk by
A. obtaining a Eurodollar loan.
B. hedging in the financial futures marketplace.
C. hedging in the commodities market.
D. pledging or factoring accounts receivable.

107. A firm has invested in corporate bonds; it may appoint in a financial futures contract in social club to protect itself from
A. declining involvement rates.
B. rising interest rates.
C. aggrandizement.
D. changes in hedging activities.

108. The effective rate on a loan with a 7% stated charge per unit and fifteen% compensating rest is
A. 11%
B. 7.2%
C. eight.2%
D. none of these

109. The constructive rate on a $xx,000 installment loan with quarterly payments, $2,000 in interest, for two years is:
A. 16%
B. vii.4%
C. 29.5%
D. viii.ix%

110. All of the following are evident during a credit crunch except:
A. the Fed tightens money supply
B. higher business requirements for funds
C. decrease in involvement rates
D. massive withdrawals of savings deposits

111. All of the following are benefits of commercial paper to the corporation except:
A. it is often issued at below the prime involvement rate
B. in that location are no compensating residue requirements
C. they are less risky
D. they provide prestige

112. The reasons why a visitor may cull to pledge accounts receivable are all of the following except:
A. lower interest charge per unit
B. borrowing capacity fluctuates with A/R
C. provides another source of financing for companies with lower credit ratings
D. all of these are reasons for pledging accounts receivable