Q414. Which exchange rate regime removes a country’s domestic monetary policy?

Q415. The manager of Liz-Beth Co. is given a 2% bonus based on income before taxes. The net income after taxes is $11,200 if Liz-Beth uses the FIFO method for inventories. The tax rate is 30%. Cost of goods sold would have been $10,000 higher if LIFO is used. How much is the difference in the manager’s bonus if LIFO is used instead of FIFO?

Q416. Susan Brown has recently received her CFA charter. She sends a letter to her clients announcing her new designation. In the letter she describes the examination series and other requirements that she has fulfilled.

Q417. A list of the percentages of the total number of cases observed at each score value or each subinterval of scores is:

Q418. A lease contains a guaranteed residual value (guaranteed by the lessee). How would this amount be treated in determining the amount the lessee capitalizes?

Q419. The coupon formula for an inverse floater is

Q420. Which of the following statement is not true about treasury bills?

Q421. In what sense is the mean of any distribution the “best guess” of the score of any single individual selected at random from the group?
I). In a series of such guesses, the sum of the errors in one direction will balance the sum of the errors in the other direction.
II). The mean score will occur more often than any other single score.
III). The chances are 50-50 that any individual will be above or below the mean.

Q422. Which of the following are motivations to underreport earnings?
I). Negotiate labor union contracts.
II). Lower incentive compensation.
III). Appear more solvent.
IV). Obtain trade relief.

Q423. Gross Sales total $505,000 and Sales Returns & Allowances total $15,000. Average accounts receivable for the period are $42,000. What is the accounts receivable turnover rate?

Q424. Trading Co. uses the percentage-of-completion method to recognize revenue. In 2000, Trading Co., agreed to construct a facility at a total contract price of $27.0 million and a total expected cost of $24.0 million. At the end of 1999 estimated costs have been changed to $25.0. Actual costs and cash inflow information are presented below (in $ millions):

What will Trading Co. report as net income in 1998, 1999 and 2000 respectively?

Q425. The price elasticity of demand for a product tends to be small (less elastic) when

Q426. The reserve requirement is 10%. You take $5,000 and deposit it in your checking account. What will be the maximum total change in bank deposits resulting from this?

Q427. If the supply of a good decreases, which of the following will generally occur in a market setting?

Q428. If $:E(EUR) = 0.7928 and $:E(GBP) = 0.5311 then:

Q429. If BJSH Bank is required to maintain a 20 percent reserve by its central bank, and currently it has excess reserves of $500,000, what is the maximum amount of loan this bank can extend?

Q430. ABC Corp. is considering the following independent projects:
Which of the following would represent the most optimal choice?

Q431. A coefficient of skewness of +2.48 indicates:
I). the mean is larger than the median
II). a large positive skewness
III). the tail of the distribution is to the right

Q432. In the Ricardian Model of trade, under autarky (closed economy):