Cash concentration accounts:

Question

Quizplus · Accepted Answer

Cash concentration accounts tend to increase the funds available for short-term investing by consolidating cash from various subsidiary accounts into a single master account, allowing for more effective cash management and investment strategies. Option B is incorrect, as the use of cash concentration accounts is meant to simplify cash management by centralizing funds. Option C is incorrect, as wire transfers typically incur fees that may offset any savings achieved through consolidation. Option D is incorrect, as cash concentration accounts do not necessarily receive customer payments directly. Option E is also incorrect, as not all cash concentration accounts are zero-balance accounts.

Cash Concentration Accounts