Which of the Following Would Be the Least Desirable Criteria

question 452

Multiple Choice

Which of the following would be the least desirable criteria against which to judge current operations of an organization's treasury function?

• A) The operations of the treasury function as documented during the last audit engagement.
• B) Company policies and procedures delegating authority and assigning responsibilities.
• C) Finance textbook illustrations of generally accepted good treasury function practices.
• D) Codification of best practices of the treasury function in relevant industries.

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Definitions:

Term Structure

The relationship between interest rates or bond yields and different terms or maturities, often depicted in a curve.

Inflation

The pace at which prices for services and products in general ascend, resulting in a decrease in the value of money to buy goods.

Call Provision

A feature in a bond or other fixed-income security that allows the issuer to buy back the security before its maturity date.

Required Return

The minimum expected return by investors for taking on a certain level of risk in an investment.