Holding excess cash causes which of the following?

Question 8 options:

a)	The company forfeits the earnings of investing that cash in higher-earning assets

b)	Company is may have a hard time paying its short-term obligations

c)	Lenders may become more concerned about the companys ability to pay

d)	Nothing; there are no negatives to holding excess cash

Question 9 (2 points)

A company with a longer order time before inventory is received once ordered would

Question 9 options:

a)	Carry lower levels of safety stock

b)	Need higher average inventory levels

c)	Predictability of sales doesnt impact the inventory decision

d)	None of the above

Question 10 (2 points)

Which theory describing the shape of the yield curve is driven by each segment of debt (government securities, commercial paper, etc.) and the return demanded on each?

Question 10 options:

a)	Liquidity premium theory

b)	Market segmentation theory

c)	Expectations hypothesis

d)

None of these

Float represents

Question 11 options:

a)	The amount of cash the company keeps on-hand

b)	The difference between the amount of cash on the firms book and the amount credited to it by its bank

c)	The excess inventory the company carries to prevent stockouts

d)	The collateral used to secure a loan

Question 12 (2 points)

Current assets that will be sold, receivables collected, and bills paid over a period are called

Question 12 options:

a)	Temporary Assets

b)	Self-liquidating assets

c)	Permanent current assets

d)	None Of these

Question 13 (2 points)

Economic ordering quantity

Question 13 options:

a)	Is the most advantageous amount for the firm to order each time

b)	Will increase with higher storage costs

c)	Will increase with higher ordering costs

d)	Determines how much safety stock a company should hold in inventory

Question 14 (2 points)

The three primary considerations in determining whether to extend credit are

Question 14 options:

a)	Credit standards

b)	Terms of trade

c)	Collection policy

d)	All the above

Question 15 (2 points)

Which theory describing the shape of the yield curve states that long-term interest rates are a function of short-term rates?

Question 15 options:

a)	Liquidity premium theory

b)	Market segmentation theory

c)	Expectations hypothesis

d)	None of these