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NEW QUESTION: 1
Which of the following is trueabout interest rate swaps (IRS)?
A. There is exchange of principal at the start and at the end of the swap
B. The fixed rate and the floating rate payers know the cash value of their payments at the outset
C. Payment netting is only allowed through a third party
D. The notional amount of the swap is generally not exchanged between counterparties
Answer: D
NEW QUESTION: 2
If a bank receives a request for financial disclosure, how may the bank fulfill this request?
A. Provide a copy of its statement of condition covering the year immediately preceding the request
B. Provide copies of its Uniform Bank Performance Reports for three consecutive years
C. Provide a copy of its most recent, unaudited financial statement
D. Provide copies of the call reports covering the current and previous year
Answer: D
NEW QUESTION: 3
Essen Co's policy is to value inventory using the periodic weighted average method. When
the financial statements were drafted, First-in, First-out (FIFO) was incorrectly used to value the closing inventory. During the period the cost of items held in inventory has fallen.
What is the effect of this error on the valuation of closing inventory and profit?
A. Inventory value = Overstated, Profit = Understated
B. Inventory value = Understated, Profit = Understated
C. Inventory value = Understated, Profit = Overstated
D. Inventory value = Overstated, Profit = Overstated
Answer: B