What kind of budget forecasts the cost for investing activities?

• A.Maintenance budget
• B.Sales budget
• C.Operating budget
• D.Capital budget

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Which of the following is the appropriate strategy to use for an active portfolio manager who is faced with an upward sloping yield curve?

• A.Purchase a security maturing before the funds are needed
• B.Purchase a security and hold to maturity
• C.Purchase a security and sell before maturity
• D.Purchase a security maturing when the funds are needed

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A bank's reserve requirement on demand deposits is 10%, and its earnings credit rate is 6%. If a company uses bank services amounting to $2,600 and has an excess of $550 in earnings credit, what is the average collected balance in the account based on a 30-day month?

• A.$123,921
• B.$709,731
• C.$585,810
• D.$461,889

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T-bill discount rate = 5.85%
T-bill face value = $100,000
Initial term = 90 days
What is the bond equivalent yield on this T-bill?

• A.5.94%
• B.5.95%
• C.6.02%
• D.5.87%

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ABC Corporation receives images of paid check exception items from its bank and reviews them daily. What action should be taken on an item where the payee on the image does NOT match the data from ABC Corporation's accounts payable?

• A.Bank alerts payee that check is unmatched.
• B.ABC Company utilizes the holder in due course defense.
• C.Image remains stored on ABC Corporation's network for future customer inquiries.
• D.No-pay decision is communicated to the bank.

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