MIE 201 Test 5 Makanui latest update

MIE 201 Test 5 Makanui lockbox - an address, usually a commercial bank, at which a company receives payments in order to speed collections from customers marketable securities - temporary investment of "extra" cash by organizations for up to one year in U.S. Treasury bills, certificates of deposit, commercial paper, or eurodollar loans Treasury bills (T-bills) - short-term debt obligations the U.S. government sells to raise money commercial certificates of deposit (CDs) - certificates of deposit issued by commercial banks and brokerage companies, available in minimum amounts of $100,000, which may be traded prior to maturity commercial paper - a written promise from one company to another to pay a specific amount of money eurodollar market - a market for trading U.S. dollars in foreign countries trade credit - credit extended by suppliers for the purchase of their goods and services line of credit - an arrangement by which a bank agrees to lend a specified amount of money to an organization upon request secured loans - loans backed by collateral that the bank can claim if the borrowers do not repay them unsecured loans - loans backed only by the borrower's good reputation and previous credit rating principal - the amount of money borrowed interest - a percentage of the principal that the bank charges for use of its money prime rate - the interest rate that commercial banks charge their best customers (usually large corporations) for short-term loans factor - a finance company to which businesses sell their accounts receivable- usually for a percentage of the total face value long-term (fixed) assets - production facilities (plants), offices, and equipment-all of which are expected to last for many years