ARM b401 b- bChapter b9 bExam bQuestions bwith bCorrect
bAnswers
Market bRisk b- bAnswer b- b b bUncertainty babout ban binvestment's bfuture bvalue bbecause bof bpotential
bchanges bin bthe bmarket bfor bthat btype bof binvestment.
Interest bRate bRisk b- bAnswer b- b b bThe brisk bthat ba bsecurity's bfuture bvalue bwill bdecline bbecause bof
bchanges bin binterest brates.
Exchange bRate bRisk b- bAnswer b- b b bUncertainty babout ban binvestment's bvalue bbecause bof
bpotential bchanges bin bthe bexchange brate bbetween bcurrencies.
Liquidity bRisk b- bAnswer b- b b bThe brisk bthat ban basset bcannot bbe bsold bon bshort bnotice bwithout
bincurring ba bloss.
Forward bContract b- bAnswer b- b b bA bcontract bthat bobligates bone bparty bto bbuy band banother bparty
bto bsell ba bspecific bfinancial binstrument bor bphysical bcommodity bat ba bspecified bfuture bdate band
bprice.
Credit bRisk b- bAnswer b- b b bThe brisk bthat bcustomers bor bother bcreditors bwill bfail bto bmake
bpromised bpayments bas bthey bcome bdue.
Counterparty bRisk b- bAnswer b- b b bThe brisk bthat bthe bother bparty bto ban bagreement bwill bdefault.
Price bRisk b- bAnswer b- b b bThe bpotential bfor ba bchange bin brevenue bor bcost bbecause bof ban
bincrease bor ba bdecrease bin bthe bprice bof ba bproduct bor ban binput.
Balance bSheet b- bAnswer b- b b ba bsnapshot bof ba bbusiness's bfinancial bposition bat ba bparticular
bmoment bin btime
Assets b- bAnswer b- b b bthe bresources ban borganization bowns bor buses bto boperate bits bbusiness.
Current bAssets b- bAnswer b- b b bcash band bother bassets bthat bare bexpected bto bbe bconverted bto
bcash bwithin ba byear.
Noncurrent bAssets b- bAnswer b- b b bassets bthat bwill bbe bused bover ba bperiod bgreater bthan bone byear
Depreciation b- bAnswer b- b b ban baccounting bterm bused bto bdescribe ballocation bof ba bnoncurrent
btangible basset's bvalue bover bits buseful blife.
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 ParadisePro. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.