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NEW QUESTION: 1
What is an outright forward FX transaction?
A. A spot sale (purchase) and a forward sale (purchase)
B. An exchange of currencies on a date beyond spot and at a price fixed today
C. A spot sale (purchase) and a forward purchase (sale)
D. An exchange of currencies on a date beyond spot
Answer: B
NEW QUESTION: 2
Which one of the following statements concerning cash discounts is correct?
A. The cost of not taking a cash discount is generally higher than the cost of a bank loan.
B. The cost of not taking the discount is higher for terms of 2/10, net 60 than for 2/10, net 30.
C. With trade terms of 2/15, net 60, if the discount is not taken, the buyer receives 45 days of free credit.
D. The cost of not taking a 2/10, net 30 cash discount is usually less than the prime rate.
Answer: A
Explanation:
Choice "d" is correct. The cost of not taking a cash discount is generally higher than the cost of a bank
loan.
Choice "a" is incorrect. The cost of not taking a 2/10, net 30 cash discount is usually more than the prime
rate.
Choice "b" is incorrect. With trade terms of 2/15, net 60, if the discount is not taken, the buyer receives 60
(not 45) days of free credit.
Choice "c" is incorrect. The cost of not taking the discount is lower (not higher) for terms of 2/10, net 60
than for 2/10, net 30.
NEW QUESTION: 3
A recent benchmarking analysis has indicated an IT organization is retaining more data and spending significantly more on data retention than its competitors. Which of the following would BEST ensure the optimization of retention costs?
A. Redefining the retention policy to align with industry best practices
B. Moving all high-risk and medium-risk data backups to cloud storage
C. Requiring that all business cases contain data deletion and retention plans
D. Revalidating the organization's risk tolerance and re-aligning the retention policy
Answer: D