Which of the following is an example of a qualitative factor used in making credit decisions?

• A.Capital
• B.Character
• C.Collateral
• D.Capacity

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In a private label financing arrangement, the seller does which of the following?

• A.Loses authority to decide which customers receive credit.
• B.Receives the full face value of the sale in most cases.
• C.Operates its own credit function as a subsidiary.
• D.Commits funds to finance accounts receivable.

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Transmission of a file of items presented for payment by the payor bank to the issuing company is known as:

• A.positive pay.
• B.full reconciliation.
• C.payor bank services.
• D.reverse positive pay.

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A company's overall cost of capital depends on the:

• A.WACC of the industry of which the company is part.
• B.mix of long term debt and equity, and the cost of each.
• C.weighted average cost of interest expense and dividends.
• D.cost associated with debt and expected dividend returns.

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Based on the following information, what is the required collected balance to cover all monthly service charges?
Deposit Float$10,000
Reserve Requirement5%
Earnings Credit Rate15%
Monthly Service Charges$6,000
Days in month30

• A.$456,000
• B.$486,667
• C.$308,222
• D.$512,281

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