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NEW QUESTION: 1
Which should be funded from a change budget?
A. An agreed change to the scope of a project
B. A fallback plan
C. The Starting up a Project process
D. A change to a plan, within allocated tolerances, due to poor estimating
Answer: A
NEW QUESTION: 2
In order to ensure the proper addition/deletion ofauthorizationsin an operational audit of data access security, an internal auditor would verify that
A. A systemsprogramkeeps records of all additions/deletions of access changes.
B. Individuals who are not employees have no access privileges.
C. Revoked access privileges are cancelled on a weekly cycle.
D. Access privileges are activated promptly after they areauthorized.
Answer: D
NEW QUESTION: 3
A futures contract is quoted at 105. Which is the cheapest-to-deliver bond for this contract if there are three available bonds, quoted at 97, 101 and 106 with conversion factors respectively of 0.9, 1 and 1.1 respectively?
A. The bond quoted at 97
B. All the bonds are equally cheap to deliver
C. The bond quoted at 101
D. The bond quoted at 106
Answer: D
Explanation:
Explanation
Treasury bond futures do not specify which bond can be used to effect delivery, but allow the seller to pick from a number of available bonds. As a result, one of these eligible bonds emerges as being the 'cheapest' to deliver, and this CTD bond is determined by the basis between the cash price of the bond and the futures spot price as adjusted by the conversion factor for this specific bond. (ie, basis = Cash Price of the Bond - (Futures Price x Conversion Factor).) The bond with the lowest basis is generally the CTD. In the given question, the three basis calculations are:
1) 97 - (0.9 x 105) = 2.5
2) 101 - (1 x 105) = -4
3) 106 - (1.1 x 105) = -9.5
Since the third bond with a quote of 106 has the lowest basis, Choice 'b' is the correct answer.
NEW QUESTION: 4
A grocery store has recently begun selling a new brand of milk for the same price as the brand of milk it already carries. After a few weeks, the grocery store finds that no one is buying the original brand of milk anymore. Which of the following scenarios could explain this situation?
A. The cost of producing the new milk brand is lower.
B. There are network effects in milk consumption.
C. The cross-price elasticity of demand for the new and old milk brands is negative.
D. The willingness to pay for the new milk brand is higher.
Answer: D
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