Which of the following statements about Treasury inflation-indexed bonds is not true?
A) The principal amount used to compute the interest payment varies with the consumer price index.
B) The interest payment rises when inflation occurs.
C) The interest rate rises when inflation occurs.
D) At maturity, the securities pay the greater of face value or inflation-adjusted principal.
A
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As companies experience a shift from labor-intensive operations to automated operations, which of the following costs becomes more difficult to trace to products?
A) Administrative costs B) Direct labor costs C) Direct material costs D) Overhead costs
If the net present value of an investment is negative, then:
A) the actual rate of return is less than the discount rate. B) the actual rate of return is more than the discount rate. C) the actual rate of return is negative. D) the discount rate is negative.
By using a forward transaction, ________ has been transferred from the firm to a speculator in the exchange rate market
A) exchange rate risk B) political risk C) foreign risk D) market risk
________ basis accounting means that revenues are recognized when cash is received and that expenses are recorded when cash is paid. ________ basis accounting means that the financial effects of revenues and expenses are recorded when earned or incurred.
What will be an ideal response?