What is the correct sequence of the following disbursement float events, from first to last step?
1. Check clears back to drawee bank account.
2. Check is encoded and enters the clearing system.
3. Depositor receives ledger credit.
4. Lockbox bank receives check.
Treasury management systems help cash managers do which of the following?
I. Reduce borrowing expenses
II. Initiate transfers
III. Determine cash position
IV. Obtain account balances
A high-yield, non-investment-grade security is commonly referred to as which of the following?
Capital budgeting is defined as the:
A company that has a nationwide workforce may use which of the following methods for disbursing payroll to minimize the number of bank accounts?
I. Payable through draft
II. Multiple drawee checks
III. ACH credit transfers
A bank uses all of the following to determine whether a company's balances are sufficient to compensate for services EXCEPT:
Which of the following are basic security issues to be considered in evaluating a treasury management system?
I. Data recovery
II. Anti-virus protection
III. Database access controls
IV. Data integration
When a subsidiary borrows money, the parent, sister subsidiary, or other entity is often used in order to:
A major toy retailer operates 65 retail stores throughout the Midwest. Which of the following credit terms is MOST LIKELY to be offered to this company by its suppliers?
The ACH system eliminates float because the:
All of the following statements are true about loan participations EXCEPT:
On a statement of cash flow, which of the following items are considered sources of cash?
I. Increase in short-term investments
II. Net income
III. Increase in accounts payable
IV. Decrease in long-term debt
To increase the money supply, the Federal Reserve would increase which of the following?
Buying a security with the intent of selling it prior to its maturity date to increase the return is an example of:
The time between when the payor mails the check and the payee receives available funds is known as:
On the basis of the data above,
what is the forecast for Thursday's cash receipts, under the exponential smoothing method?
U.S. dollar-denominated instruments issued by foreign banks through their domestic branches are known as:
Representations and warranties in a loan agreement refer to which of the following?
A company uses a dividend capture strategy to:
A retail lockbox system is characterized by which of the following?
I. An emphasis on processing cost
II. Detailed information on discounts taken
III. Small-dollar amounts per invoice
IV. Multiple invoices per payment
