FIN 200: Quiz and Final Exam
Axia College of University of Phoenix (UoP)
Introduction to Finance: Harvesting the Money Tree
1. Which method of controlling pledged inventory provides the greatest degree of security to the lender?
2. Firms exposed to the risk of interest rate changes may reduce that risk by
3. General Rent-All's officers arrange a $50,000 loan. The company is required to maintain a minimum checking account balance of 10% of the outstanding loan. This practice is called
4. From the banker's point of view, short-term bank credit is an excellent way of financing
5. A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What change might be expected on the balance sheets of its customers?
6. Trade credit may be used to finance a major part of the firm's working capital when
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