What is LIBOR, how are LIBOR interest rates determined, and for what are they used?
What will be an ideal response?
LIBOR is the London Interbank Offered Rate and is a series of short-term interest rates estimated daily in London by a group of large international banks. Unfortunately, the LIBOR rates (currently estimated for 10 currencies and 15 relatively short maturities) are simply estimates of rates at which these banks could borrow or lend and are not actual rates. Thus, they are subject to manipulation and fraud. This is particularly important because these rates are used to set adjustable rates for items such as mortgages, consumer, and municipal loans. Some estimates put the affected value impacted by LIBOR in excess of $800 trillion. In recent years larger banks have been fined heavily for alleged manipulation of the LIBOR market.
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Which of the following statements is true regarding a defined benefit pension plan?
A) Defined benefit plans are relatively easy to handle from an accounting perspective. B) Employers that use defined benefit plans are assuming more risks than employers that use defined contribution plans. C) Defined benefit plans require an employer to contribute a defined sum each period to a pension fund. D) A defined benefit plan requires the employer to fund the plan each year for an amount equal to the pension expense.
Select the incorrect statement regarding upstream and downstream costs.
A. Upstream and downstream costs are reported as product costs on the income statement. B. Companies normally incur significant downstream costs. C. To be profitable, companies must recover the total cost of developing, producing, and delivering products. D. Pricing decisions must consider both upstream and downstream costs in addition to manufacturing costs.
A worker at a grocery store directing customers to lines based on the amount of groceries they are purchasing is an example of?
a. Complementary services b. Reservations c. Demand sorting d. Pricing policies/promotions
The bylaws must be adopted at the initial organizational meeting of the board of directors
Indicate whether the statement is true or false