ETS MFT BUSINESS EXAM NEWEST 2024 ACTUAL EXAM COMPLETE QUESTIONS WITH CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+

What is an appropriate Federal Reserve action to stimulate the U.S. economy? - ANSWERSReducing reserve requirement (cash reserve ratio- amount the bank must "reserve" not lend) Forward Exchange Rate - ANSWERSThe exchange rate at which a bank agrees to exchange one currency for another at a future date when it enters into a forward contract with an investor. Spot Exchange Rate - ANSWERSThe rate of a foreign-exchange contract for immediate delivery. Also known as "benchmark rates", "straightforward rates" or "outright rates", spot rates represent the price that a buyer expects to pay for a foreign currency in another currency. Interest-rate Parity - ANSWERSA theory in which the interest rate differential between two countries is equal to the differential between the forward exchange rate and the spot exchange rate. Liquidity Ratios - ANSWERSDo we have enough cash to meet our bills? Provide info on a firms ability to meet its short-term financial obligations. Also known as "current ratio" = current assets/current liabilities Financial Leverage Ratios - ANSWERSProvide an indication of long-term solvency of the firm: debt ratio, debt-to-equity ratio, and interest coverage. Debt Ratio - ANSWERSTotal Debt/Total Assets Debt-to-equity Ratio - ANSWERSTotal Debt/Total Equity Asset Turnover Ratios - ANSWERSProvide information on how efficiently a firm is utilizing its assets Profitability Ratios - ANSWERSOffers several different ways to measure how successful a firm is at generating profits