From the perspective of an account holder, a savings account is a liability with interest.
Answer the following statement true (T) or false (F)
False
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The extra collateral the Fed requires above the value of a discount loan is known as
A. the term premium. B. a haircut. C. a covenant. D. secondary credit.
A project's after-tax net present value is increased by all of the following except
a. revenue accruals. b. cash inflows. c. depreciation deductions. d. expense accruals.
The price floor is the lowest price at which a producer can sell its product without incurring a loss.
Answer the following statement true (T) or false (F)
?Risk may be incorporated into capital budgeting by 1. increasing an investment's internal rate of return by risk premium 2. adjusting the cash flows by the probability of occurrence 3. increasing the cost of capital by a risk premium
A. ?1 and 2 B. ?1 and 3 C. ?2 and 3 D. ?1, 2, and 3