An MBB differs from a CMO or a pass-through in that: the MBB does not result in the removal of mortgages from the balance sheet. an MBB holder has no prepayment risk. cash flows on an MBB are not directly passed through from mortgages.

Which of the following would increase the value of a bank charter? Tightening restrictions on new charters Broadening the activities banks can engage in Increasing reserve requirements Doubling capital adequacy requirements

We can always predict the future perfectly when we use forecasting methods.

Which of the following is NOT a typical benefit of centralized purchasing?

Periodic review inventory models generate order quantities that vary from time period to time period, depending on the usage rate.

The following data are pulled from a recent annual report. Calculate percent invested in inventory. Assets Raw material inventory: $120,000 Work-in-process inventory: $50,000 Finished goods inventory: $300,000 Property, plant & equipment: $500,000 Other assets: $200,000 Total assets: $1,170,000   Condensed Income Statement Revenue: $2,000,000 Cost of goods sold: $600,000 Other expenses: $1,000,000 Net income: $400,000

Given an actual demand this period of 61, a forecast for this period of 58, and an alpha of 0.3, what would the forecast for the next period be using exponential smoothing?

What is the forecast for May using a three-month weighted moving average with weights=.5 for the most recent, .3 for the month before, and .2 for two months ago? Nov. Dec. Jan. Feb. Mar. April 39 36 40 44 39 45

The reorder point is the inventory level at which action is taken to replenish the stocked item.

In a retail environment, there is no need to hold inventory because retailers can perfectly predict when shoppers will show up and what they wish to purchase.