BTF 8

Capital is made up of current assets minus current liabilities is called

• Working capital.

• Working assets.

• Current assets.

• Physical assets.

Which of the following financial instruments are available from commercial banks?

• Gilts.

• Commercial paper.

• Certificates of deposit.

• Treasury bills.

Regarding financing exports and trading risks, the possibility of payment default _ khả năng trả nợ của customer by the customer is:

• Physical risk. _ thiếu hàng

• Credit risk.

• Trade risk. _ từ chối nhận hàng

• Liquidity risk._ không có khả năng tài trợ cho khoản tín dụng cấp cho khách hàng

A market where new securities are bought and sold for the first time is known as:

• A futures market.

• A secondary capital market.

• A primary capital market.

• A money market.

Which of the following statements concerning preference shares is correct?

• Preference shares carry the same voting rights as ordinary shares.

• Preference shares carry the right to a fixed rate of dividend each year.

• The payment of a preference share dividend is guaranteed each year.

• Preference shares are always a type of debt capital.

In relation to a listed company that is raising new finance, an offer for the sale of stocks is a form of:

• Public offering.

• Factoring.

• Borrowing.

• Retained earnings.

In an average matching business, permanent current assets are financed by:

• Short-term trade credit.

• Short-term debt.

• Overdrafts.

• Long-term debt.

Which of the following is NOT the source of equity finance?

• Retained earnings.

• Preference shares.

• Overdraft.

• New issues of shares.

In the banking system, secondary banks are also known as:

• Clearing banks

• Commercial banks

• Retail banks

• Merchant banks

Debt capital in the form of securities issued by companies, the government and local authorities is:

• Bank Overdraft

• Common shares

• Factoring

• Loan stock