Fleeson Company needs additional funds to purchase equipment for a new production facility and is considering either issuing bonds payable orborrowing the money from a local bank in the form of an installment note. How does an installment note differ from a bond payable?

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All of the following affect the balance of the capital account except?     bank deposits.     purchases of government and corporate securities.     purchases of goods and services.     loans.     These bonds have their coupons reset every two or three years to reflect the current interest rate environment and any changes in the firm’s credit quality?     Callable bonds     Put bonds     Treasury Inflation Protected Securities     Extendable notes

a) Falco Inc. is considering a debt issue and is trying to determine the appropriate amount to issue. Considering the information in the table below, indicate which amount borrowed you believe to be the optimal level of debt and explain completely why.

Which one of the following is used by Treasury dealers to indicate the price they are willing to pay to purchase a Treasury bill? Select one: a. par rate b. face rate c. bid discount d. bank discount e. asked discount

Which of the following is (are) correct statement(s)     To increase reserves in the banking system on temporary basis, the Bank of Canada engages in a repurchase agreement (Repos or SPRAs)     The upper limit of the operating band is called Bank rate     The Bank of Canada uses SPRAs to lower the overnight rate and SRAs to raise the overnight rate.     all of the above     Only a and b above The monetary policy tools used by the Bank of Canada include     are open market operations     Shifting of government deposits to Chartered banks     Changing the reserve requirements     all of the above     Only a and c above The Monetary Base of the Bank of Canada includes     government securities and discount loans     currency in circulation and reserves of the chartered banks     government securities and reserves     currency in circulation and discount loans

You are required to identify and give reasons for the appropriate classification of the debt instruments A and B below: Part A.Macaroon holds certain debt investments to collect their contractual cash flows of interest and principle. The funding needs of the company are predictable and the maturity of such financial assets is matched to Macaroon’s estimated funding needs. Macaroon performs credit risk management activities with the objective of minimising credit losses.In the past, Macaroon has sold some of its debt investments when the credit risk of the financial assets increased beyond the acceptable levels of risk as documented in the company’s investment policy. In addition, infrequent sales have occurred as a result of unanticipated funding needs. The managers reports to key management personnel focus on the credit quality of the financial assets and the contractual return. Part B.Macaroon holds certain debt investments with specified contractual cash flows of interest and…