Explain the bid—ask spread in the external currency market?
What will be an ideal response?
Answer: The bid-ask spread in the external currency market is the difference between the bid rate, which is the interest rate that the bank pays on its deposits and the ask rate, which is the interest rate that the bank charges on its loans. The market is very competitive, and the bid-ask spreads are small.
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American companies may be more willing to sue competitors to gain competitive advantage than those in other countries, which is an example of which type of force?
a. Special interest b. Economic c. Sociocultural d. Political-legal e. Demographic
According to the text, the traditional definition of selling includes all of the following components EXCEPT:
A. communication between buyer and seller. B. providing customers with information. C. persuading a prospective customer to buy. D. explaining how to appear unselfish to customers. E. providing after-the-sale service.
In testing controls related to a client's processing of credit sales transactions, auditors need to define "deviations" in advance. Give six examples of deviations from control objectives.
What will be an ideal response?
Rachel is single and has a college degree in finance. She is employed as a loan officer at a bank; her yearly AGI approximates $50,000 . During the year, she enrolled in a weekend MBA program and incurred the following nonreimbursed expenses: $4,100 (tuition), $300 (books), $200 (other school supplies), and $200 (transportation to and from campus). Disregarding the 2%-of-AGI limitation, as to the
MBA program, Rachel has a: a. Deduction for and deduction from AGI of $0. b. Deduction for AGI of $4,000 and deduction from AGI of $800. c. Deduction for AGI of $4,000 and deduction from AGI of $700. d. Deduction for AGI of $4,100 and deduction from AGI of $700. e. None of these.