A firm finds that its customer base is growing in geographical terms and needs to reduce its float by obtaining cheques from receiving locations near the customers, rather than having them send their
Cheques directly to the firm's main office. This setup is called (a) :
A) Lockbox arrangement.
B) Wire transfer arrangement.
C) Cash concentration.
D) Overnight mail.
E) Compensating balance.
Correct Answer:
Verified
Q263: Disbursement float is defined as the:
A) Period
Q264: The Miller-Orr model:
A) Is more simplistic than
Q265: Under the Miller-Orr model, the lower limit
Q266: Lockboxes are used to:
A) Distribute payroll cheques.
B)
Q267: Which of the following statements is true?
A)
Q269: A banking sub-account that is used for
Q270: Which of the following is the best
Q271: Collection float:
A) Is more desirable to firms
Q272: In the Miller-Orr model of cash management
Q273: Martin's Methods, an educational training firm, has
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