Which of the following conditions would make a lockbox system potentially more attractive to a firm?
A) mail time saved is lower
B) payment size is higher
C) the interest rate declines
D) processing time saved is lower
Ans: B) payment size is higher
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Failure to provide the Agency Law Disclosure form:
a. exposes the agent to criminal penalties. b. exposes the agent to license penalties. c. puts the agent's fee at risk of loss. d. forfeits the agent's license.
A company due to pay a certain amount of a foreign currency in the future decides to hedge with futures contracts. Which of the following best describes the advantage of hedging?
A. It leads to a better exchange rate being paid B. It leads to a more predictable exchange rate being paid C. It caps the exchange rate that will be paid D. It provides a floor for the exchange rate that will be paid