Matching
Match the following with the items below:
Premises:
Long-term interest rates reflect the average of expected short-term rates over the life of the long-term security.
The relationship of short- and long-term interest rates relies on the maturity preference of various financial institutions.
Current assets that will be reduced or converted to cash within the normal operating cycle of the firm.
Depicts in graphical form the relationship between interest rates and maturities for securities of equal risk.
Computer terminals in retail stores that may be used for inventory control or other purposes.
Equal monthly production used to smooth out production schedules and employ manpower and equipment more efficiently.
Financing provided by sellers or suppliers in the normal course of business.
The relative convertibility of short-term assets to cash.
The financing and management of the current assets of the firm.
Assets that are assumed to be long term in nature.
Time period in which financing may be difficult to find and interest rates may be quite high by normal standards.
Assets that are converted in to cash within the normal operating cycle of the firm.
A representative quantity from a probability distribution arrived at by multiplying each outcome times the associated probability and summing the values.
Current assets that will not be reduced or converted to cash within the normal operating cycle of the firm.
Responses:
point of sales terminals
expectations hypothesis
term structure of interest rates
tight money
"temporary" current assets
trade credit
level production
self-liquidating assets
working capital management
market segmentation theory
liquidity
expected value
fixed assets
"permanent" current assets
Correct Answer:
Premises:
Responses:
Long-term interest rates reflect the average of expected short-term rates over the life of the long-term security.
The relationship of short- and long-term interest rates relies on the maturity preference of various financial institutions.
Current assets that will be reduced or converted to cash within the normal operating cycle of the firm.
Depicts in graphical form the relationship between interest rates and maturities for securities of equal risk.
Computer terminals in retail stores that may be used for inventory control or other purposes.
Equal monthly production used to smooth out production schedules and employ manpower and equipment more efficiently.
Financing provided by sellers or suppliers in the normal course of business.
The relative convertibility of short-term assets to cash.
The financing and management of the current assets of the firm.
Assets that are assumed to be long term in nature.
Time period in which financing may be difficult to find and interest rates may be quite high by normal standards.
Assets that are converted in to cash within the normal operating cycle of the firm.
A representative quantity from a probability distribution arrived at by multiplying each outcome times the associated probability and summing the values.
Current assets that will not be reduced or converted to cash within the normal operating cycle of the firm.
Premises:
Long-term interest rates reflect the average of expected short-term rates over the life of the long-term security.
The relationship of short- and long-term interest rates relies on the maturity preference of various financial institutions.
Current assets that will be reduced or converted to cash within the normal operating cycle of the firm.
Depicts in graphical form the relationship between interest rates and maturities for securities of equal risk.
Computer terminals in retail stores that may be used for inventory control or other purposes.
Equal monthly production used to smooth out production schedules and employ manpower and equipment more efficiently.
Financing provided by sellers or suppliers in the normal course of business.
The relative convertibility of short-term assets to cash.
The financing and management of the current assets of the firm.
Assets that are assumed to be long term in nature.
Time period in which financing may be difficult to find and interest rates may be quite high by normal standards.
Assets that are converted in to cash within the normal operating cycle of the firm.
A representative quantity from a probability distribution arrived at by multiplying each outcome times the associated probability and summing the values.
Current assets that will not be reduced or converted to cash within the normal operating cycle of the firm.
Responses:
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