1) A large manufacturing firm has been selling on a 3/10 net 30 basis. The firm

1) A large manufacturing firm has been selling on a 3/10 net 30 basis. The firm changes its credit terms to 2/20 net 90. What change might be expected on the balance sheets of its customersA.-Increased receivables and increased bank loansB.-Increased payables and increased bank loansC.-Increased payables and decreased bank loansD.-Decreased receivables and increased bank loans2) Which method of controlling pledged inventory provides the greatest degree of security to the lenderA.-Overall inventory liensB.-WarehousingC.-Trust receiptsD.-Blanket inventory liens3) Firms exposed to the risk of interest rate changes may reduce that risk byA.-hedging in the financial futures market.B.-pledging or factoring accounts receivable.C.-hedging in the commodities market.D.-obtaining a Eurodollar loan.4) As the interest rate increases the present value of an amount to be received at the end of a fixed periodA.-decreasesB.-Not enough information to tellC.-remains the sameD.-increases