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NEW QUESTION: 1
Which three replenishment count types are used for Periodic Automated Replenishment (PAR)?
A. Reorder Point: Generates a replenishment request for the order quantity based on days of cover for the item lead time
B. Order Economic Order Quantity (EOQ): Generates a replenishment request for the calculated quantities based on inventory policies to maintain the PAR quantity
C. On-Hand Quantity: Generates a replenishment requisition for the difference between the on-hand quantity and the PAR-level quantity
D. Order Quantity: Generates a replenishment request for the order quantity entered for the replenishment count
E. Order PAR: Generates a replenishment requisition for the PAR-level quantity
Answer: A,C,D
Explanation:
Explanation
https://docs.oracle.com/cd/A60725_05/html/comnls/us/inv/replcn02.htm
NEW QUESTION: 2
When can you run auto-matching for a transaction matching reconciliation?
A. after the period end date is reached
B. after you load transactions to the reconciliation data sources
C. after the reconciliation meets its start date
D. after the reconciliation status changes to Open With Preparer
Answer: B
NEW QUESTION: 3
Which of the following is a method of reconnaissance in which a ping is sent to a target with the expectation of receiving a response?
A. Network enumeration
B. Application enumeration
C. Passive scanning
D. Active scanning
Answer: A
NEW QUESTION: 4
What can the buyer of a 6 x 12 FRA expect to receive (or pay) if the contracted rate is 10% and the settlement rate is 12%? Assume contract notional is $100m.
A. Receive $943,396
B. Pay $943,396
C. Pay $1,000,000
D. Receive $1,000,000
Answer: A
Explanation:
Explanation
The buyer of the FRA gets to borrow $100m at 10% per annum for 6 months at the end of 6 months from the contract date. Thus, the interest due is $100m * 10% * 6/12 = $5m. However, at the end of the 6 months (when the notional borrowing period begins), the spot rate is 12%. The interest due on a borrowing at the spot rate would be $100m * 12% * 6/12 = $6m. Since the buyer gets to borrow cheaper than the going rate, he or she has made a gain of $1m on the FRA. However, this amount is not due immediately, it is due at the end of the 6 month borrowing period (ie, 12 months from the date the contract was entered into). The seller of the FRA can make the buyer whole by paying the buyer the present value of $1m due in 6 months time, which is $1m/(1 +
12%*6/12) = $1m/1.06 = $943,396.
Thus, Choice 'd' is the correct answer. Remember that the FRA gets settled at the beginning of the notional borrowing period as all future cash flows, and the applicable discount rates are known with certainty. The buyer and the seller do not need to wait for the entire period to get over first. The cash settlement allows the buyer to borrow at the market rate and still have the same net borrowing cost as he or she had initially contracted for in the FRA.
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