A. Return on equity of a firm is determined by tax management efficiency and may be computed by multiplying the values of total asset turnover, leverage factor and profit margin

1. True

2. False

B. Investment securities are financial assets which serve as first line of defense by banks against customer excessive withdrawals or high demand for loans.

1. True

2. False

C. If you buy a bond issued by Apple the bond is an:

1. liability to Apple and an asset to you.

2. liability to you and an asset to Apple.

3. liability to both you and Apple

4. asset to both you and Apple.