APBM APBM Certifications CBM Questions & Answers

• Question 31:

  A long-term contract under which a borrower which a borrower agrees to make payments of interest and principal on specific dates to its holder is called:

  A. Bond

  B. Loan

  C. Mortgage

  D. Credit

  Correct Answer: A

• Question 32:

  If earnings are poor and stockholders are dissatisfied, an outside group might solicit the proxies in an effort to overthrow management and take control of the business, this is known as:

  A. Poor Proxy

  B. Proxy fight

  C. Scrap proxy

  D. stand-up fight Proxy

  Correct Answer: B

• Question 33:

  A firm uses more short-term sources, its debt costs are low, profits are high and solvency is low with:

  A. Aggressive strategy

  B. Conservative financing strategy

  C. Moderate financing strategy

  D. Excess Liquidity strategy

  Correct Answer: A

• Question 34:

  Which element id needed for the establishment of a field warehouse?

  A. public notification

  B. physical control of the inventory

  C. supervision by a custodian of the field warehousing concern

  D. All of the above

  Correct Answer: D

• Question 35:

  What involves the purchase of accounts receivables by the lender, generally without resource to the borrower?

  A. Wal-Mart financing

  B. Pledging

  C. Factoring

  D. Interest expense

  Correct Answer: C

• Question 36:

  The heart of is the security agreement, a standardized document on which the specific pledged assets are listed.

  A. Uniform Commercial Code

  B. Factoring Account Code

  C. Pledged Account Code

  D. Crediting Resource Code

  Correct Answer: A

• Question 37:

  Banks sometimes require borrowers to maintain an average demand deposit balance equal to from 10 percent to 20 percent of the amount borrowed, this is called:

  A. line of credit

  B. compensating balance

  C. commitment fee

  D. revolving credit agreement

  Correct Answer: B

• Question 38:

  Which of the following is NOT the source of short-term funds?

  A. Accruals

  B. Letter of credit

  C. Reverse repurchase agreement

  D. Payable concentration

  Correct Answer: D

• Question 39:

  What involves more trading monitoring of the portfolio and may be motivated by a philosophy that the investor can beat the market?

  A. Yield-spread investment strategy

  B. Passive investment strategy

  C. Active investment strategy

  D. None of the above

  Correct Answer: C

• Question 40:

  represents the average time it takes to collect credit accounts.

  A. Days sales outstanding

  B. Average sales outstanding

  C. Collection policy

  D. Accumulating time

  Correct Answer: A