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21.
Lockboxes:
22.
Cash concentration accounts:
23.
Which one of the following statements is correct?
24.
A cash concentration account:
25.
The main purpose of a cash concentration account is to:
26.
Which one of the following statements is correct concerning a cash
management system that employs both lockboxes and a concentration bank
account?
27.
A zero-balance account:
28.
Which one of the following statements is correct concerning zero-balance
accounts?
29.
Which one of the following statements is correct?
30.
Which two of the following are the primary reasons why firms temporarily
accumulate large cash surpluses?
I. cyclical activities
II. desire to invest funds
III. daily operations
IV. fixed asset purchases
31.
Which one of the following statements is correct?
32.
Municipal bonds:
33.
Money market securities have which of the following characteristics?
I. long maturities
II. low default risk
III. high degree of liquidity
IV. low rates of return
34.
A jumbo CD:
35.
Brown Trucking is buying a U.S. Treasury bill today with the understanding
that the seller will buy it back tomorrow at a slightly higher price. This
investment is known as a:
36.
A repurchase agreement generally has a maximum life of:
37.
A money market preferred stock:
38.
Which of the following costs related to holding cash are minimized when the
level of cash a firm holds is optimized?
39.
Which of the following statements related to the BAT model is correct?
I. The BAT model is used to determine the target cash balance for a firm.
II. The BAT model is rarely used in business due to its complex nature.
III. The BAT model is a model that helps eliminate a firm's collection float.
IV. One disadvantage of the BAT model is the fact that it assumes all cash
outflows are known with certainty.
40.
Which of the following variables are included in the BAT model?
I. upper cash limit
II. interest rate on marketable securities
III. opportunity cost of holding cash
IV. fixed cost of each securities trade
41.
The BAT model is used to:
42.
The Miller-Orr model assumes that:
AACSB: Analytic
