4 Flashcards
In monopolistic competition,
each firm produces and sells a slightly different product
Under the hedging approach
long term to long term
and short term used with short term
gdp is not affected by:
changes in units or technoloy because it is a monetary measure.
a monetary adjustment= price level
Duration matching:
is effective in immunizing portfolios from parallel shifts in the yield curve.
Conventional duration strategies assume:
a flat yeaild curve.
back
Immunization only protects the nominal value of the terminal liabilities and does not adjust for inflation.
Accounts receivable are at the optimal level when:
carrying costs = opportunity costs
Flowcharts
are useful in evaluating processes and controls in an organization or unit.
preliminary analysis
A nation’s economic growth is measured by
gauging changes in the production of physical output per capita.
disk storage vs. magnetic tape drive
acess to data takes less time with disk storage
many auditors hesitate to use embedded audit modules because
Auditors are required to be involved in the system design of the application to be monitored
replacement cost is:
a measure of current value
A favorable balance of trade occurs when:
exports exceed imports.
Increases in U.S. imports will decrease the U.S. balance of trade.
net present value =
present value of future inflows - initial investment
To reduce inflationary pressures, the Federal Reserve would :
Measures to reduce the supply of money include selling bonds and increasing margin requirements (also called the reserve requirement).
