Business Criminal Law in California

Question 1 2 points Save

Managing a firm's cash outflows through use of a "zero balance account" system offers all but which of the following benefits?

Centralized control over disbursements.

Reduction of management time spent on superficial cash management activities.

Higher rate of return on invested funds.

Reduction of excess balances in outlying accounts.

Question 2 2 points Save

_______________ arise out of the financing of foreign trade.

Federal agency securities.

Bankers' acceptances.

U.S. Treasury bills.

Commercial paper.

None of the above.

Question 3 2 points Save

Float is best described by which of the below?

Investing excess cash balances.

The time required for a deposited check to clear through the commercial banking system and be available for payment.

The term used to describe payment for the purchase of raw materials that are needed to complete production of a luxury liner.

The time that is required to receive payment on a ZBA.

Question 4 2 points Save

What differentiates "discretionary financing needs" from "external financing needs?"

Assets.

Retained earnings.

Sales.

Spontaneous liabilities.

Question 5 2 points Save

Which of the following statements regarding a line of credit is true?

The purpose for which the money is being borrowed must be stated by the borrower.

A line of credit agreement usually fixes the interest rate that will be applied to any extensions of credit.

A line of credit agreement is a legal commitment on the part of the bank to provide the stated credit.

Such agreements usually cover the borrower's fiscal year.

Question 6 2 points Save

A company trying to optimize the use of float will try to

increase its disbursing float

decrease its disbursing float

decrease processing float

both a and c

Question 7 2 points Save

Which of the following is not a reason for adoption of a common currency...