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Financial management environment

Forums › ACCA Forums › ACCA FM Financial Management Forums › Financial management environment

  • This topic has 3 replies, 3 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • July 8, 2020 at 11:54 am #576324
    samir958
    Participant
    • Topics: 1
    • Replies: 2
    • ☆

    Hello! I didn’t understand these questions, please explain answers. Thank you in advance.

    1.Question:

    Indicate which of the following statements correctly describe the functions that financial intermediaries fulfil for customers and borrowers.

    True False
    1 Maturity transformation
    2 Fund aggregation
    3 Dividend creation
    4 Pooling of losses

    2.Question:

    What role would the money market have in a letter of credit arrangement?

    Initial arrangement of the letter of credit
    Acceptance of the letter of credit
    Issuing of a banker’s acceptance
    Discounting the banker’s acceptance

    July 8, 2020 at 2:51 pm #576342
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54682
    • ☆☆☆☆☆

    Your first question is dealt with in Chapter 2 of our free lecture notes and the free lectures that go with it.

    Your second question is covered by the Paper FM technical article entitled “Management of foreign accounts receivable” on the ACCA website.

    July 8, 2020 at 5:39 pm #576360
    martisha
    Member
    • Topics: 0
    • Replies: 19
    • ☆

    What is the answer to the second question, please?

    July 9, 2020 at 8:23 am #576401
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54682
    • ☆☆☆☆☆

    “Discounting the bankers acceptance”.

    (Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers – they have answers and explanations 🙂 )

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