Which of the Following Trading Strategies Are Correct

question 52

Multiple Choice

Which of the following trading strategies are correct?
I. If you expect the British pound to appreciate in value, you should short the pound.
II. If you expect interest rates to rise, you should go long on interest rate futures.
III. If you expect the stock market to rise, you should go long on stock-index futures.
IV. If you expect the stocks in your portfolio to temporarily decline in value, you should short stock-index futures.

• A) I and II only
• B) II and IV only
• C) III and IV only
• D) I and III only

Understand the classification and management of cash equivalents and their impact on a company's liquidity.

Understand the primary components of an internal control system and differentiate between control activities.

Recognize the classification and treatment of cash and cash equivalents in financial reporting.

Identify the objectives and components of physical controls to safeguard assets.

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Definitions:

Plaster

A building material used for coating walls and ceilings, consisting mainly of water, sand, lime, or gypsum.

Labor

The human effort, both physical and mental, contributed towards the production of goods and services.

Interest Rate

The part of a loan that incurs interest fees for the borrower, often shown as an annual percentage rate of the total amount borrowed.

Garden Gnomes

Decorative statues that represent humanoid figures, often placed in gardens or outdoor areas for ornamentation.