Preferred stockholders are the residual claimants of the firm

Losses on noncancelable purchase contracts should be recognized:

a) at the date of inception. b) at the time of payment. c) when the purchase is recorded. d) in the period a decline in market price occurs.

Which of the following statements is true about a currency board system?

A. Under a strict currency board system, interest rates adjust automatically based on the supply and demand of domestic currency. B. To convert domestic currency on demand into another currency, a currency board takes grants from the International Monetary Fund. C. This system is a true fixed exchange rate regime, because the domestic currency is fixed against other currencies. D. A currency board can issue additional domestic currency even when there are no foreign exchange reserves to back it. E. A currency board authorizes the government to print money and set interest rates.