1) A company would use a sweep account to:

A. Maintain a zero balance and move cash to an interest-earning account

B. Move cash between countries with different currencies

C. Return cash to shareholders

D. Manage the amount of cash available on-hand

3) A company with predictable sales levels would

A. Carry lower levels of safety stock

B. Need higher average inventory levels.

C. Predictability of sales doesn't impact the inventory decision

D. Non of the above

5) In managing collections and disbursements of cash financial manager should look at all these but:

A. Float

B. Improving collections

C. Shortening disbursements

D. Synchronizing cash inflows and outflows

8) The term structure of interest rates shows us:

A. The relative level of shot-term and long-term interest rates at a point in time.

B. How interest rates are expected to change over time

C. What a company would pay to borrow money today.

D. What interest rates have been over the last-ten year period.

12) Season production requires all but:

A. Less inventory storage space

B. Higher overtime costs

C. Lower overall production capacity

D. Seasonal reductions in workforce