________ involves the strategic use of mailing points and bank accounts to lengthen mail and clearing floats. A) A direct send B) Concentration banking C) A lockbox D) Controlled disbursing ANSWER D
Date: September 19th, 2020
A ________ is an unsigned check drawn on one of a firm’s bank accounts and deposited into its account at another bank. A) direct send B) wire transfer C) depository transfer check D) preauthorized check ANSWER C
Date: September 19th, 2020
When the price of one commodity is the same wherever in the world the good is being sold when denominated in a particular currency, it is said the Law of ________ prevails. A) currency supply B) currency demand C) purchasing power parity D) one price ANSWER Answer: D
Date: September 19th, 2020
Which one of the following reasons for violations of the Law of One Price is the most obvious? A) tariffs on imports B) banking rules C) industrial policies D) exchange rate controls ANSWER Answer: A
Date: September 19th, 2020
A ________ is a telegraphic communication that, via bookkeeping entries, removes funds from the payer’s bank and deposits them in an account of the payee’s bank. A) direct send B) wire transfer C) depository transfer check D) preauthorized check ANSWER B
Date: September 19th, 2020
Float is important in the cash conversion cycle of a firm because ________. A) its presence reduces a firm’s average collection period B) its presence reduces a firm’s average payment period C) its presence lengthens both a firm’s average collection period and its average payment period D) its presence reduces the investment that a firm […]
Date: September 19th, 2020
The yields on negotiable certificates of deposit are typically above those on U.S. Treasury issues and comparable to the yields on commercial paper with similar maturities. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The Solar Inc has daily cash receipts of $90,000. A recent analysis of its collections indicated that customers’ payments were in the mail for an average of 4 days. Once received,the payments are processed in one and a half days. After payments are deposited, it takes an average of two and a half days for […]
Date: September 19th, 2020
A banker’s acceptance is a low-risk security because at least two, and sometimes three, parties may be liable for its payment at maturity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
________ float results from the delay between the time when a customer deducts a payment from the checking account ledger and the time when the vendor actually receives the funds in a spendable form. A) Mail B) Processing C) Collection D) Disbursement ANSWER C
Date: September 19th, 2020
