CFA CFA Level 1 Question of the Week – Corporate Finance

Question of the Week – Corporate Finance

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    • Avatar of AdaptPrepAdaptPrep
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        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
      • Avatar of PahtsanPahtsan
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          • CFA Level 1
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          Are these all Level I questions?

        • Avatar of AdaptPrepAdaptPrep
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            @Pahtsan Yes, they are.

          • Avatar of AdaptPrepAdaptPrep
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              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).

            • Avatar of ZaydarecovZaydarecov
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                • CAIA Level 2
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                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.

              • Avatar of maeelossamaeelossa
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                  • CFA Level 1
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                  Delinquent…

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