1.)DEF Company's cash forecast indicates that $700,000.00 will be available for investment immediately, but must use in two months for a capital project. The Treasurer can invest the funds in a two- month instrument such that its maturity date is just before when the funds will be needed. This is a very simple ____________ investment.

a. Matching strategy c. Tranched cash flow strategy

b. earnings credit strategy d. riding the yield curve

2.. HIJ Company's cash forecast indicates that $300, 000.00 of excess cash will be available for investments. The Treasurer breaks the available cash into thirds and invests $100K for one month, the other $100K for two months, and the remaining $100k for three months. As the first to mature, the Treasurer re-invests to 3 months, and as the investments mature, it was re-invested to three months.

a. Matching strategy c. tranched cash flow strategy

b. earnings credit strategy d. laddering strategy

3.)Samsung needs to borrow $500, 000.00 to meet their short term funding needs such as Christmas bonus of their employees. Their funding will be available 60 days from this date. In this sense, they issue this type of debt with a maturity that coincides with the term when their funding will be available.

a. Commercial Paper c. Long Term Loan

b. Bridge Loan d. Lines of Credit.

4.)Whiskey borrowed $12 million from the bank and now must repay $200,000 of the loan every month for the next 20 years.

a. Commercial Paper b. Long Term Loan c. Bridge Loan d. Lines of Credit.