1. Which of the following would be most likely to lead to a lower level of interest rates in the economy?
A. All of the above
B. The level of inflation begins to drop.
C. Households start spending more and saving a smaller percentage of their income.
D. A new technology like the Internet has just been introduced, and it increases investment opportunities.
E. None of the above
F. The economy moves out of a recession.
2. A positive cash cycle:
is benefical to the short-term solvency of a firm.
means that inventory is paid for before it is sold and the cash from the sale is collected.
can be obtained by delaying payment for inventory.
can be obtained by reducing the time required to obtain payment for sales.