Exam (elaborations)
ARM 401 - Chapter 9 Exam Questions with Correct Answers
- Course
- Institution
ARM 401 - Chapter 9 Exam Questions with Correct Answers
[Show more]
Seller
Follow
AMAZONN
Content preview
ARM 401 - Chapter 9 Exam Questions with CorrectAnswers
Market Risk - Answer - Uncertainty about an investment's future value because of potential changes in
the market for that type of investment.
Interest Rate Risk - Answer - The risk that a security's future value will decline because of changes in
interest rates.
Exchange Rate Risk - Answer - Uncertainty about an investment's value because of potential changes in
the exchange rate between currencies.
Liquidity Risk - Answer - The risk that an asset cannot be sold on short notice without incurring a loss.
Forward Contract - Answer - A contract that obligates one party to buy and another party to sell a
specific financial instrument or physical commodity at a specified future date and price.
Credit Risk - Answer - The risk that customers or other creditors will fail to make promised payments as
they come due.
Counterparty Risk - Answer - The risk that the other party to an agreement will default.
Price Risk - Answer - The potential for a change in revenue or cost because of an increase or a decrease
in the price of a product or an input.
Balance Sheet - Answer - a snapshot of a business's financial position at a particular moment in time
Assets - Answer - the resources an organization owns or uses to operate its business.
Current Assets - Answer - cash and other assets that are expected to be converted to cash within a
year.
Noncurrent Assets - Answer - assets that will be used over a period greater than one year
Depreciation - Answer - an accounting term used to describe allocation of a noncurrent tangible asset's
value over its useful life.
Liabilities - Answer - the debts and obligations that represent claims against an organization's assets.
Shareholders' Equity - Answer - the net amount of assets after deducting an organization's debts and
obligations (liabilities)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AMAZONN. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now