Which of the Following Is NOT an Advantage of Evaluated

question 92

Multiple Choice

Which of the following is NOT an advantage of evaluated receipts settlement (ERS) ?

• A)It compresses the approval process into a single step.
• B)It requires fewer employees.
• C)It saves on accounting expense.
• D)It avoids the need for two signatures on a cheque.

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Definitions:

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities such as U.S. Treasury bills.

Face Value

This is the nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing its value at issue.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset or investment returns relative to its mean.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset at a specified price within a certain timeframe.