BNAD 301 Exam 3 with Questions and Verified Answers

BNAD 301 Exam 3 with Questions and Verified Answers The Sarbanes-Oxley Act Section 404 required management to "acknowledge its responsibility for establishing and maintaining an adequate internal control structure and procedures for financial reporting." This means that: A. CEOs and CFOs must check their accountants work. B. CEOs and CFOs are directly accountable for the accuracy of the financial statements. C. CEOs and CFOs are required to make sure their financial reporting is disclosed D. CEOs and CFOs must put internal controls into place in their firm. ANSWER As a result of increased volatility in financial markets, instruments called ___________ were developed A. Swaptions B. Derivatives C. Forwards D. Futures ANSWER B Hedging risk for a long position is accomplished by A. taking a short position. B. taking additional long and short positions in equal amounts. C. taking a neutral position. D. taking another long position ANSWER A