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Match the Following with the Items Below

Question 108

Matching

Match the following with the items below:

Premises:
An unsecured promissory note issued by a large corporation to investors.
A measure of the effective rate of a loan.
The practice of using accounts receivables from sales of computers and automobiles, for example, to collateralize an offering of securities in the secondary market.
A legal entity in which one key bank owns a number of affiliate banks as well as other nonbank subsidiaries engaged in related activities.
A loan from a foreign bank denominated in U.S. dollars.
Arise through the normal course of business from various points within the firm.
A measure of the relationship between accounts receivable and accounts payable for the firm.
The interest level charged to a bank's most creditworthy customers.
A reduction in price if a payment is made within a specified time.
An extension of credit generally for a time period from one to seven years.
A benchmark interest rate set in Europe that is competitive with the US Prime rate.
Bank loans that are usually paid off as the inventory is sold and cash is collected.
A bank requirement that business customers maintain a minimal level of cash in their account.
Use a series of equal payments to retire a loan.
Responses:
spontaneous sources of funds
bank holding company
term loan
cash discount
annual percentage rate (APR)
prime rate
net trade credit
LIBOR
self-liquidating loan
Eurodollar loan
commercial paper
asset-backed public offering
installment loan
compensating balances

Correct Answer:

An unsecured promissory note issued by a large corporation to investors.
A measure of the effective rate of a loan.
The practice of using accounts receivables from sales of computers and automobiles, for example, to collateralize an offering of securities in the secondary market.
A legal entity in which one key bank owns a number of affiliate banks as well as other nonbank subsidiaries engaged in related activities.
A loan from a foreign bank denominated in U.S. dollars.
Arise through the normal course of business from various points within the firm.
A measure of the relationship between accounts receivable and accounts payable for the firm.
The interest level charged to a bank's most creditworthy customers.
A reduction in price if a payment is made within a specified time.
An extension of credit generally for a time period from one to seven years.
A benchmark interest rate set in Europe that is competitive with the US Prime rate.
Bank loans that are usually paid off as the inventory is sold and cash is collected.
A bank requirement that business customers maintain a minimal level of cash in their account.
Use a series of equal payments to retire a loan.
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