A bank in poor condition may take out a loan under close Fed scrutiny. Such a loan is known as

A. a secondary credit discount loan.
B. a haircut.
C. a covenant.
D. a primary credit discount loan.


Answer: A

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Dividends to preferred stockholders are deducted from net income when calculating the return on common stockholders' equity ratio because

a. dividends are not an expense on the income statement. b. the ratio is an indicator of the return on "common" stockholders' equity, not the return on preferred stock. c. dividends are only available for distribution to common stockholders. d. conservatism indicates that shareholders prefer a smaller numerator.

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Multiple optimal solutions provide ________ flexibility to the decision maker

A) greater B) less C) greater or equal D) less or equal

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The service-oriented architecture (SOA) is a form of client/server

computing. Indicate whether the statement is true or false

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New information systems will enable the creation of electric meters that run "backwards." Which of the following best explains this statement?

A) IT will allow customers to manipulate their electricity bills. B) IT has been instrumental in reducing the global power consumption. C) IT has not made any significant contribution to the field of electricity distribution and measurement. D) IT will allow customers to see their patterns of daily energy usage.

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