FIN200 Week 2 CheckPoint Week Two Quiz

FIN200 Week 2 CheckPoint Week Two Quiz - 1) Firms exposed...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1) Firms exposed to the risk of interest rate changes may reduce that risk by A. pledging or factoring accounts receivable. B. hedging in the financial futures market. C. hedging in the commodities market. D. obtaining a Eurodollar loan. 2) LIBOR is A. the interest rate paid by the British government on its long-term bonds. B. an interest rate paid on Eurodollar loans in the London market. C. an interest rate paid by European firms when they borrow Eurodollar deposits from U.S. banks. D. a resource used in production 3) Commercial paper is very popular with many firms because A. it is very easy to roll over (refinance) in times of economic turmoil. B. it satisfies the firm's need for long-term funds. C. there are no required lines of credits at the bank. D. it can usually be issued below the prime rate. 4) All of the following are benefits of commercial paper to the corporation EXCEPT: A. they provide prestige B. there are no compensating balance requirements C. they are less risky D. it is often issued at below the prime interest rate
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/04/2011 for the course FIN 200 taught by Professor Williams during the Spring '08 term at University of Phoenix.

Page1 / 2

FIN200 Week 2 CheckPoint Week Two Quiz - 1) Firms exposed...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online