Quiz Ch 20 – T/F Interest-Rate Risk in Short-Term Securities
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Interest-rate risk is elevated in short-term securities.
True or false: Interest-rate risk is elevated in short-term securities.
True or false: The majority of money market instruments exhibit a high level of liquidity.
True or false: Lock-box systems facilitate local banks in collecting and processing the firm’s regional remittances.
True or false: The goal of just-in-time inventory management is to decrease inventory levels.
True or false: Increasing the number of inventory orders per year results in a decrease in total order costs.
True or false: In the United States, checks are a more favored payment method than in numerous other developed countries.
True or false: Among money market securities, bank certificates of deposit are both the safest and most liquid.
True or false: The predominant share of current assets in retail companies is held by inventory.
True or false: Providing trade credit can enhance the likelihood of receiving repeat orders.
True or false: The cash cycle represents the time span from a firm’s expenditure on materials to the receipt of its sales proceeds.