Free Financial CABM Exam Questions (page: 17)

represents the average time it takes to collect credit accounts.

  1. Days sales outstanding
  2. Average sales outstanding
  3. Collection policy
  4. Accumulating time

Answer(s): A



What involves more trading monitoring of the portfolio and may be motivated by a philosophy that the investor can beat the market?

  1. Yield-spread investment strategy
  2. Passive investment strategy
  3. Active investment strategy
  4. None of the above

Answer(s): C



Which of the following is NOT the source of short-term funds?

  1. Accruals
  2. Letter of credit
  3. Reverse repurchase agreement
  4. Payable concentration

Answer(s): D



Banks sometimes require borrowers to maintain an average demand deposit balance equal to from 10 percent to 20 percent of the amount borrowed, this is called:

  1. line of credit
  2. compensating balance
  3. commitment fee
  4. revolving credit agreement

Answer(s): B



The heart of is the security agreement, a standardized document on which the specific pledged assets are listed.

  1. Uniform Commercial Code
  2. Factoring Account Code
  3. Pledged Account Code
  4. Crediting Resource Code

Answer(s): A



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