Finance 455 exam
Name:__________________________________________________________________
Class:______________________________________ Date:____________________
Finance 455 (9:40 class)
Examination 2
Monday, November 4, 2013
9:40 a.m. - 10:55 p.m.
20 Questions
100 points
Form (A)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Use a pencil.
The proctor is leaving at 10:55 sharp.
Calculators permitted, but no sharing.
Leave your ID where the proctor can check it.
All questions are worth five (5) points. If there are any graphs on the test, then leave the questions from the graph blank on the computer scan sheet! Mark your answers directly on the graph!
Put your test form (A, B or C) on the answer sheet.
If more than one answer is correct, choose the best answer.
Turn in BOTH your answer sheet and the exam itself.
Do not put your social security number on any part of the test! You’ll lose points!
To get your score, see the Blackboard site.
Good luck.
1. What is the biggest risk factor for merchant acquirers?
a. Delayed delivery.
b. Default risk.
c. Interest rate risk.
d. Operations risk.
e. Reinvestment risk.
2. Why is the Altman Z-score robust to accounting manipulation?
a. For many common types of manipulation, some inputs to the Z-score increase and some decrease. These tend to offset each other.
b. The Z-score uses historical data so that people attempting to manipulate the Z must plan several years ahead.
c. The Z-score uses mostly market data which is less likely to be manipulated.
d. All of the above.
e. None of the above.
3. Which of the following contribute(s) to the differences in risk between a bank making a commercial loan and a merchant acquirer’s risk?
A. A merchant acquirer incurs a contingent liability.
B. A bank delivers no funds.
C. A merchant acquirer doesn’t take collateral.
D. A merchant acquirer’s indemnifies a third party.
E. Both A and D.
4. Altman’s Z-score uses which of the following in predicting bankruptcy?
Class:______________________________________ Date:____________________
Finance 455 (9:40 class)
Examination 2
Monday, November 4, 2013
9:40 a.m. - 10:55 p.m.
20 Questions
100 points
Form (A)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Use a pencil.
The proctor is leaving at 10:55 sharp.
Calculators permitted, but no sharing.
Leave your ID where the proctor can check it.
All questions are worth five (5) points. If there are any graphs on the test, then leave the questions from the graph blank on the computer scan sheet! Mark your answers directly on the graph!
Put your test form (A, B or C) on the answer sheet.
If more than one answer is correct, choose the best answer.
Turn in BOTH your answer sheet and the exam itself.
Do not put your social security number on any part of the test! You’ll lose points!
To get your score, see the Blackboard site.
Good luck.
1. What is the biggest risk factor for merchant acquirers?
a. Delayed delivery.
b. Default risk.
c. Interest rate risk.
d. Operations risk.
e. Reinvestment risk.
2. Why is the Altman Z-score robust to accounting manipulation?
a. For many common types of manipulation, some inputs to the Z-score increase and some decrease. These tend to offset each other.
b. The Z-score uses historical data so that people attempting to manipulate the Z must plan several years ahead.
c. The Z-score uses mostly market data which is less likely to be manipulated.
d. All of the above.
e. None of the above.
3. Which of the following contribute(s) to the differences in risk between a bank making a commercial loan and a merchant acquirer’s risk?
A. A merchant acquirer incurs a contingent liability.
B. A bank delivers no funds.
C. A merchant acquirer doesn’t take collateral.
D. A merchant acquirer’s indemnifies a third party.
E. Both A and D.
4. Altman’s Z-score uses which of the following in predicting bankruptcy?