The liquidity premium theory of the term structure
A) indicates that today's long-term interest rate equals the average of short-term interest rates that people expect to occur over the life of the long-term bond.
B) assumes that bonds of different maturities are perfect substitutes.
C) suggests that markets for bonds of different maturities are completely separate because people have different preferences.
D) does none of the above.
D
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The current ratio measures a company's ________
A) overall ability to pay liabilities B) ability to pay current liabilities with current assets C) proportion of assets that are financed by debt D) rate of cash flow
Sergio makes a gift of a check to Todd who takes it in good faith and without notice of any claim, defense, or defect. With respect to this check, Todd is A) none of the choices
B) an assignee. C) an ordinary holder. D) an ordinary holder in due course.
Promotional expenditures on advertising, sales promotion, and personal selling
A. are expenses that must be covered as they help by creating demand for a product. B. contribute to a product's cost and price, which in turn will affect a company's return on investment. C. are incomes that must be covered in a firm's pricing structure. D. are examples of fixed costs on an organization's income statement. E. are the three main components of marketing mix.
To be a qualifying relative, the taxpayer must meet three general tests and four specific tests. Which one is part of the four specific tests?
A. Citizen or resident test. B. Residency test. C. Gross income test. D. Age test.