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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. 8.56 percent.
B. 8.50 percent.
C. 7.77 percent.
D. 9.44 percent.
Answer: A
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. OTC derivative contracts that allow banks to take positions in series of future exchange 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 to take positions in future interest rates.
D. 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.
Answer: B
NEW QUESTION: 3
What type of network does the ISIS protocol support except P2P?
A. NBMA
B. P2MP
C. LAN (broadcast network)
D. SNAP
Answer: C
NEW QUESTION: 4
A. Option B
B. Option D
C. Option C
D. Option A
Answer: A,B,C
Explanation:
Sadly, you cannot convert a LUN into a Vulcan Language Dictionary.