The ACH system eliminates float because the:

• A.Fed charges back the cost of float.
• B.receiving and originating institutions settle simultaneously.
• C.transactions are value-dated.
• D.transactions are initiated electronically.

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Company ABC has a concentrated investor base consisting primarily of large institutional shareholders. It would like to increase its number of smaller shareholders using the most cost effective method of raising capital available. What should Company ABC do to accomplish this goal?

• A.Issue warrants.
• B.Implement a stock repurchase plan.
• C.Implement a dividend reinvestment plan.
• D.Issue preferred stock.

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Which of the following credit terms would be MOST appropriate for a seasonal product that a manufacturer wants to sell to a retailer during the product's off-season?

• A.2/10, net 30
• B.2/10, prox 30
• C.3/15, 2/30, net 45
• D.2/10, net 120

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An accountant is fired after reporting to the SEC that she witnessed the CFO inappropriately reduce expenses ahead of the quarterly earnings announcement. Which of the following would apply?

• A.The accountant is in violation of Section 404 of the Sarbanes-Oxley Act.
• B.The CFO is protected by the code of ethics.
• C.The CFO is liable for Bank Secrecy Act reporting.
• D.The accountant is protected by 'whistle-blower' laws.

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Which of the following would be considered insurance risk management services?

• A.External auditors who are hired to review financial statements
• B.Information-system consultants who upgrade loss controls
• C.Risk group that recommends the CFO approve SOX 404 compliance
• D.IT professionals who ensure the treasury workstation properly converts FX

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