Bender Day 4

Question 1

What would the federal reserve do under expansionary policy?

Answer 1

Purchase government securities and lower the Discount rate

MCQ-08900

Question 2

What pricing policy results in establishment of a price to external customers higher than the competitive price for a given industry?

Answer 2

Collusive pricing

Anticipates that competitors will collude to maintain process and mutual profitability

MCQ-08302

Question 3

How is application software used if it is purchased?

Answer 3

The purchaser buys the licence and is only allowed to use it under certain terms and conditions

MCQ-04604

Question 4

What is the effect when a foreign competitors currency becomes weaker compared to the US dollar?

Answer 4

The foreign company will have an advantage in US markets

When the foreign currency becomes weaker, goods are cheaper, customers can buy more with the dollar and demand will increase

MCQ-05590

Question 5

According to COSO, an executive’s deliberate misrepresentation to a banker considering giving a loan to the entity is what type of IC limitation?

Answer 5

MGMT override

MCQ-08523

Question 6

COSO ERM does not encompasses:

Answer 6

Decreasing Inherent Risk appetite

MCQ-09005