Question

chapter 25 Question 2 07 2 points Which of the following is true about the user of derivatives? Derivatives usually appear explicithy in the financial statements Academic surveys account for much of our knowledge of corporate derivatives use Smaller frms are more likely to use derivatives than large firms * The most frequently used derivatives are comnodity and equity futures. None of these are true. D View Feedback chapter 26 Question 5 O/ 2 points A prearranged credit agreement with a bank typically open for two or more years is called a letter of credit cleanup loan compensating balance. Ine of credit revoliing credit arrangement D View Feedback

Answer 1

Q2: Commodity and equity futures are most common derivatives traded in the market. Hence answer is option d.

Q5:Line of credit is a like an open supply of credit from bank to the company. Hence answer is option d.

Q7:Restricitve means very conservative and controlled. If more marketable securities are held it is considered conservative. If minimal credit sales is considered, then it is controlled and conservative approach. Hence answer is option c

Q9: wire transfer is the online method most used, Hence answer is option b