Answered: Electronic funds transfers (EFTs) are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Which of the following statements regarding the professional arbitrage is FALSE? a) The arbitrageurs may choose to hold cash even when they know the asset prices are temporarily below their fair values. b) The arbitrageurs may lose money sometimes. c) The arbitrageurs conduct fire sales sometimes because the asset prices are too high. d) The arbitrageurs may make the markets less efficient sometimes.
Economies of scale allows financial institutions to Select one: reduce asymmetric information problem reduce diversify. reduce moral hazard. None of the answers are correct reduce transactions costs
The deterioration of the balance sheet of financial institutions leads to : a. a deleveraging processb. a reduction in leveragec. a credit crunchd. all of the above
Which of the following is TRUE about blockchain financial transactions? The complexity of blockchain-based payment solutions can present barriers to mass adoption, such as credit cards, Bitcoin scalability improvements and advancements are why Bitcoin is now acceptable in most places and by most vendors. Blockchain security concern is the primary reason why Bitcoin, Ethereum and other cryptocurrency still hasn't become a mainstream payment solution like credit cards. Regulation has generally strangled the use of cryptocurrency and continues to remain the major barrier to adoption.
It is bad money management to use credit. True or false.
Why is not a bad thing to have negative cash from financing activities?
Without considering the fact that the money deposited in the margin account earns interest, a hedger might take a wrong hedging position which turns it into a speculative one. True False
1. Why banks are subject to intense regulations? Explain the circumstances where banks are sometimes left with excess liqidity?
According to the definition of a liquid financial firm, when should it have access to funds? At any time, regardless of the need for funds Precisely at the time the funds are needed When the funds are available at a low cost Only when the funds are urgently needed
Why have banks been losing income advantages ontheir assets in recent years?
Asymmetric information problem occurs in the markets when Select one: the people tend to be dishonest None of the answers are correct the person who borrows money having more information than the person who lends the money and tends not to disclose this information when the people who Lend money having more information than borrowers Clear my choice
The company’s usage of the Baumol model in cash management involves trade-off. A decrease in the optimal transaction size would more likely result from a. Increase of return on marketable securities b. None of the choices is correct c. Increase in the annual demand for cash d. Decrease of debt to asset ratio

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Electronic funds transfers (EFTs) are decreasing used by companies due to the inconvenience and high-cost. true or false?