Which of the following statement completions is CORRECT? If the yield curve is upward sloping, then the marketable securities held in a firm's portfolio, assumed to be held for emergencies, should
A. consist mainly of short-term securities because they pay higher rates.
B. consist mainly of U.S. Treasury securities to minimize interest rate risk.
C. consist mainly of short-term securities to minimize interest rate risk.
D. be balanced between long- and short-term securities to minimize the adverse effects of either an upward or a downward trend in interest rates.
E. consist mainly of long-term securities because they pay higher rates.
Answer: C
You might also like to view...
If Geoff makes a fraudulent statement about his medical history and fails to disclose relevant facts about his medical history in his application for insurance, the insurance company ________.
A. cannot consider the contract voidable B. has a right to cancel Geoff's policy C. has to adjust the benefits payable at Geoff's discretion D. cannot cancel the policy unless Geoff misrepresented his age as well
Just what type of training to offer employees ________.
a. is obvious b. is sometimes difficult to determine c. depends on the service-failure rate d. depends on where in the delivery system the employees are located
City Medical Clinic has two service departments, Building Services and Energy, and three operating departments, Pediatrics, Geriatrics, and Surgery. The clinic allocates the cost of Building Services on the basis of square footage and Energy on the basis of patient days. No distinction is made between variable and fixed costs. Budgeted operating data for the year just completed follow:??Service DepartmentsOperating Departments??Building ServicesEnergyPediatricsGeriatricsSurgery?Budgeted costs before allocation$30,000$15,000$135,000$90,000$150,000?Square feet2,0008,00012,00036,00024,000?Patient days??2,7503,8504,400Required:a. Prepare a schedule to allocate service department costs to operating departments by the direct method (round all dollar amounts to the nearest
whole dollar).b. Prepare a schedule to allocate service department costs to operating departments by the step-down method, allocating Building Services first (round all amounts to the nearest whole dollar). What will be an ideal response?
__________refers to the number of product lines an organization offers
Fill in the blanks with correct word.