1. Which of the following transactions will not affect the quick ratio of a company?

a. Inventory sold on credit

b. Cash purchase of equipment

c. Payment for accounts payable

d. Accounts receivable collected

e. Bank loan repaid

2. The earnings of the S&L industry suffered as a result of maturity imbalances in the inflationary later 1970's and early 1980's. The development that created the problem was.

a. S&L's held too many short-term Treasury bills

b. There were sustained high interest rates in the late 1970's and early 1980's as a result of Federal Reserve monetary policy

c. The S&Ls were paying very low interest rates on NOW accounts

d. the S&Ls were earning high yields on consumer loans

e. none of the above