CFA CFA Level 1 Question of the Week – Corporate Finance

Question of the Week – Corporate Finance

  • Author
    Posts
    • Avatar of AdaptPrepAdaptPrep
      Participant
      • Undecided
      Up
      9
      ::

      Which of the following examples would be best described
      as a drag on liquidity?

      • Reduced line of credit
      • Early payment to creditors
      • Delinquent account receivable
      siddharth voted up
    • Avatar of AdaptPrepAdaptPrep
      Participant
      • Undecided
      Up
      5
      ::

      In basic terms, for a company to be liquid, money must
      come in before it goes out. There are 2 potential difficulties; drags and
      pulls. A drag is when the money doesn’t come in when expected (such as an account receivable being late or
      uncollectible). A pull is when the money must go out sooner than expected (such
      as a reduced line of credit, or early payments).

      greatdas11 voted up
    • Avatar of AdaptPrepAdaptPrep
      Participant
      • Undecided
      Up
      4
      ::

      @Pahtsan Yes, they are.

    • Avatar of PahtsanPahtsan
      Participant
      • CFA Level 1
      Up
      3
      ::

      Are these all Level I questions?

    • Avatar of ZaydarecovZaydarecov
      Participant
      • CAIA Level 2
      Up
      0
      ::

      Although Forex is an exciting and profitable financial market, many traders struggle to get stable profits and increase their trading deposits. Most newcomers to the market drain their first deposit in a few weeks because they lack an understanding of the basic trading concepts and do not pay much attention to risk management. Also, beginners do not use such things as the classic pivot point formula and some other tricks of experienced traders. Therefore, learning about all the trading tricks is important before you start doing it professionally.

Viewing 4 reply threads
  • You must be logged in to reply to this topic.