Question 1:
Which of the following will increase the cash conversion cycle?
a. Increase the time it takes to sell inventory
b. Increase the time it takes to make inventory
c. Reduce the time it takes to pay supplies
d. Reduce the time it takes to receive payments from customers
Question 2:
What is the annual interest of a 10% discount loan on $100,000 assuming we must maintain $20,000 compensating balance and payments are made quarterly?
Question 3:
If inflation in the US is forecasted at 2.5% this year and 4.5% in New Zealand, what is the expected spot rate, given the current spot rate is 0.7USD/$1NZD.
Question 4:
Given the current spot rate is 0.8AUD/$1NZD and the expected spot rate in one year’s time is 0.9AUD/$1NZD, what is the current one year forward rate?
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