A compensating balance restricts cash; in effect, it increases the interest on the loan and reduces a company's liquidity
Indicate whether the statement is true or false
T
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Donna defaulted on her loan owed to Second State Savings and Loan. The loan was secured with Donna's car. Donna used the car for personal and family reasons. Which statement is correct?
a. Second State may take Donna's car without a court order if this can be done without a breach of the peace. b. Second State may take Donna's car without a court order even if it means a breach of the peace. c. Second State may not take Donna's car because it is a consumer good. d. Second State may not take Donna's car because perfection was automatic.
________ denotes the dollar amount a consumer would attach to a good or service.
A. Utility B. Value C. Economic contribution D. Consumer surplus
NewStarts Company sells infant and toddler products. It hires only women as sales representatives because it thinks that its customers relate better to women. This is:
A) a violation of Title VII of the 1964 Civil Rights Act. B) an example of a bona fide occupational qualification. C) a violation of the Equal Pay Act. D) an allowable personal preference.
A bond is currently trading below par. Which of the following must be true about that bond?
A) The bond's yield to maturity is less than its coupon rate. B) The bond is a zero-coupon bond. C) The bond's yield to maturity is greater than its coupon rate. D) B or C above