Source Documents

question 21

Multiple Choice

Source documents:

• A) Are input devices.
• B) Provide the basic information processed by an accounting system.
• C) Cannot be electronic files.
• D) Store processed information for future use.
• E) Cannot be paper documents.

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Definitions:

On-The-Run Bonds

The most recent issue of a government bond, usually more liquid and yielding slightly less interest compared to older ('off-the-run') bonds.

Nearly Identical Duration

A characteristic of two or more financial instruments whose cash-flows occur over a similar time frame, making their sensitivity to interest rate changes similar.

Hedge Fund Fee Structure

The compensation arrangement between hedge funds and their managers, typically involving a management fee plus a performance fee based on the fund's returns.

Management Fee

A charge levied by an investment manager for managing an investment fund's portfolio of securities.