In order to avoid the misappropriation of company-owned financial investments, which of the following is the best course of action that can be taken by the management of a company with a large portfolio of financial investments?
A) Require that employees who enter and leave the safekeeping area sign and record in a log the exact reason for their access.
B) Require that one trustworthy and bonded employee be responsible for access to the safekeeping area where securities are kept.
C) Require that employees involved in the safekeeping function maintain a subsidiary control ledger for securities on a current basis.
D) Require that the safekeeping function for securities be assigned to a securities broker who will act as a custodial agent.
Answer: D) Require that the safekeeping function for securities be assigned to a securities broker who will act as a custodial agent.
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Laborland has 1 million workers. Suppose 50,000 workers migrate from a neighboring country to join Laborland's work force. Which of the following will happen in this case if Laborland's capital stock remains unchanged?
A) The country's income per worker will increase. B) The total efficiency units of labor in the economy will decrease. C) The relationship between output and capital stock becomes negative. D) The marginal contribution of labor to Laborland's output will fall.
When it became known in 1997 that the Thai government had insufficient foreign exchange reserves to maintain the exchange rate, how did currency speculators respond? What policy did the IMF suggest?
What will be an ideal response?