How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 38882
Experience:  Retired (mostly)
Type Your Business Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

1.Assume that liquid can be invested to yield 12 percent. If

This answer was rated:

1.Assume that liquid can be invested to yield 12 percent. If annual remittance checks total $2 billion, what is it worth for th efirm to reduce float by 1 day?
a.54,833   b. 657,534 c.1,000,000 d.25,000,000

2.Which of the following has highest interet rate risk?
a. 20-year U.S. Treasury Bond
b. Bendix Corporation's 6 month commerical paper
c. A six month money market certificate at a federally insured bank
d. A Southwest Airlines bond maturing in 4 years

3. International purchases 30,000 cases of wine at a cost of 3,136,000 Euros. If the current exchanges rate is .7445 euros to the US dollar, what is the purchase price in US dollars?
a. 2,106,111 b.2,3334,752   c.3,333,333   d. 4,212,223

4. Currency exchanges rates throughtout the world trade within very narrow ranges on any given day because of:
a. purchasing power parity
b.the international translation effect
c. arbitrage
d. the law of one price

1. $2,000,000,000 * 12%/365 = $657,534

2. "d," because corporate bonds are unsecured and unguaranteed, and four years is longer than 6 months.

3. 3,136,000 * 1/0.7445 = 4,212,223.

4. This question must be answered according to a particular text. I the real world, all of these answers are incorrect -- currency trades in a narrow range because trades are made using extremely large contracts, which makes the risk on any individual trade equally large.

socrateaser and 2 other Business Law Specialists are ready to help you