The relationship of a limited or fixed upside return with a high probability and the potential large downside loss with a small probability is an example of an asset's credit risk to an FI.

If you presently have $6,000 invested at a rate of 15%, how many years will it take for you investment to triple? (Round up to obtain a whole number of years if necessary.)

A) 2 B) 4 C) 6 D) 8 E) 10

Credit terms 2/10, net 30 means ________

A) a discount of 10% is granted if payments are done within 30 days B) a discount of 10% is granted if payments are done within 2 days, net 30 days available C) a discount of 2% is granted if payments are done within 10 days, net 30 days available D) a discount of 2% is granted if payments are done within 30 days, beyond which a 10% interest is charged