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 long-term securities because they pay higher rates.
B. consist mainly of short-term securities because they pay higher rates.
C. consist mainly of U.S. Treasury securities to minimize interest rate risk.
D. consist mainly of short-term securities to minimize interest rate risk.
E. be balanced between long- and short-term securities to minimize the adverse effects of either an upward or a downward trend in interest rates.
Answer: D
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A) represents a credit relationship with another company or governmental entity B) is a standardized contract between two parties to acquire various forms of investments C) represents stock ownership in another company and sometimes pays dividends D) is a financial instrument that entitles the holder to receive periodic interest
Which item below is defined as a connection with the organization and passion for the job?
A. employee engagement B. organizational culture C. organizational commitment D. job satisfaction
The disclosure that shows the difference in the cost of inventory between LIFO and FIFO is referred to as the:
A. Net realizable value. B. LIFO reserve. C. Inventory allowance. D. FIFO adjustment.
Which of the following statements is true about newspaper supplements?
A. They appeal to advertisers who are not concerned about reproduction quality and who prefer to use black and white ads. B. They are generally considered unsuitable for national advertising due to their high cost. C. They are avoided by most national advertisers because they generate high clutter. D. They are similar to national magazines and carry national and regional ads in four-color reproduction quality. E. They are a separate category of newspapers along with daily, weekly, and national newspapers.