Match the Following Terms with Their Definitions

question 34

Multiple Choice

Match the following terms with their definitions.
-ATM

• A)Document that records deposit
• B)Added to bank balance
• C)Used in mobile banking
• D)Automatic teller machines
• E)One to receive amount of check
• F)Bank adds to your account
• G)Record keeping device
• H)Bounced check
• I)Check must be deposited to payee's account
• J)A report sent by bank
• K)Total credit card sales minus credit accounts
• L)Identifies to whom check is to be transferred
• M)Bank is charging your account
• N)No restrictions
• O)One who writes a check
• P)Eliminates the use of paper checks
• Q)Signing back of checks
• R)Comparing bank balance to checkbook balance
• S)Not processed by bank yet

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Definitions:

Debt-Equity Ratio

Debt-Equity Ratio measures a company's financial leverage, calculated by dividing its total liabilities by its stockholders' equity.

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks, used to assess the risk of adding a new asset to a portfolio.

M&M Proposition II

This financial theory, originating from Modigliani and Miller, states that a firm's cost of equity increases as the firm increases its level of debt financing, holding everything else constant.

Capital Structure

The mix of different forms of financial securities used by a firm to finance its operations, typically consisting of debt and equity.