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NEW QUESTION: 1
A company obtained a short-term bank loan of $500,000 at an annual interest rate of eight percent. As a
condition of the loan, the company is required to maintain a compensating balance of $100,000 in its
checking account. The checking account earns interest at an annual rate of three percent. Ordinarily, the
company maintains a balance of $50,000 in its account for transaction purposes. What is the effective
interest rate of the loan?
A. 7.77 percent.
B. 9.44 percent.
C. 8.50 percent.
D. 8.56 percent.
Answer: D
Explanation:
Choice "d" is correct. 8.56%. To calculate the effective annualized percentage cost of financing: Choices
"a", "b", and "c" are incorrect, per the above calculation.
NEW QUESTION: 2
Interest rate swaps are:
A. Exchange traded derivative contracts that allow banks to take positions in future interest rates.
B. OTC derivative contracts that allow banks and customers to obtain the risk/reward profile of long-term
interest rates without relying on long-term funding.
C. Exchange traded derivative contracts that allow banks and customers to obtain the risk/reward profile of
long-term interest rates without having to use long-term funding.
D. OTC derivative contracts that allow banks to take positions in series of future exchange rates.
Answer: B
NEW QUESTION: 3
What type of network does the ISIS protocol support except P2P?
A. P2MP
B. LAN (broadcast network)
C. SNAP
D. NBMA
Answer: B
NEW QUESTION: 4
A. Option A
B. Option B
C. Option D
D. Option C
Answer: B,C,D
Explanation:
Sadly, you cannot convert a LUN into a Vulcan Language Dictionary.