BEC Q&A Flashcards
What Is an Interest Rate Swap?
Forward contract to swap future interest payments between Fixed Interest and Floating Interest, or any other variation of the two types of interest. Future payments are paid by the participant with the highest interest payment to the participant with the lower interest.
What is present value of annuity?
Current value of future payments of an annuity
What is present value?
present value of future sum or cashflow at a specific rate of return
How does the slope move for Demand curve
Upper right corner of the quadrant to the lower left
What is short-term financing risk?
Short-term financing interest rates fluctuate
How to calculate Profit Margin % with ROA % and Asset turnover?
What are examples of physical access controls?
Locked doors, key cards, biometric access scanners
What are Appraisal costs?
Inspection expense at postproduction, laboratory maintenance, and product test
What are internal failure costs?
Rework, Scrap, and tool changes
What are external failure costs?
Cost of returning goods, Liability claims, Warranty costs
What are Prevention costs?
Employee training, Inspection expense at preproduction, Process redesign, and product redesign
What are conformance costs?
Sum of prevention and appraisal costs
What are non conformance costs?
Sum of External and internal failure costs
