1. Which one of the following is a source of cash?
increase in marketable securities
decrease in long-term debt
increase in deferred taxes
increase in net property
decrease in accounts payable
2. Read the following sentence regarding the assessment of credit and select the correct option(s) for the missing words from the terms provided further below:
Interest rates should be based on the relative _____ of the customer and in line with the _____ of the bank.
Terms:
credit risk
net asset value
credit policy
credit covenants