The late fee charged by a prospective supplier will be an important factor to consider in deciding whether your company will do business with them.

Select one:

a. False

b. True

The move from an aggressive financing strategy to a conservative financing strategy should __________ a company's liquidity by increasing the use of ________-term funds.

Select one:

a. Increase, short

b. Decrease, short

c. Increase, long

d. Decrease, long

Typically, moving from a conservative to a moderate or aggressive financing strategy will result in __________ profitability and in _________ liquidity for the company.

Select one:

a. greater, greater

b. greater, lesser

c. lesser, lesser

d. Lesser, greater

Which of the following are exempt from payment of state income tax

Select one:

a. Corporate commercial paper

b. Bank certificate of deposit

c. Bank acceptance

d. Treasury bill

e. None of the above

Investments in municipal commercial paper issued by the city where you are located are exempt from both state and federal income tax

Select one:

a. False

b. True

Sustainable growth rate is the sales growth rate that

Select one:

a. requires new outside debt

b. can be achieved by the firms marketing department

c. requires new external equity

d. can be supported by the firms current financial policies

Which of the following ideas says that each maturity of the yield curve represents a separate set of supply and demand conditions?

Select one:

a. Pure expectation hypothesis

b. Biased expectations hypothesis

c. Market segmentation hypothesis

d. Liquidity preference hypothesis

e. None of the above

Relative to treasury securities, agency securities have __________ liquidity and ___________ default risk.

Select one:

a. more, more

b. less, more

c. more, less

d. less, less