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The speculative motive is the need to hold cash
O a. To pay outstanding checks
b. To maintain a firm's daily operations
c. To invest in opportunities which may arise
Od. To compensate a bank for services rendered
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- This refers to a bank that has agreement with the clearinghouse to exchange checks. A. Commercial Bank B. Correspondent Bank C. Universal Bank D. Concentration Banking 2. Firms hold cash for the purpose of taking advantage of investment opportunities. A. Precautionary Motive B. Transaction Balance C. Compensating Balance D. Speculative Motive 3. This refers to the process of monitoring and analyzing the amount of cash needed and how it can be generated. A. Cash Monitoring B. Cash Balances C. Cash Management D. Cash ForecastingWhich among the following is not a function of a bank? a. Issuing demand drafts b. Paying interest on deposits c. Sale of tangible goods d. Investing in securitiesWhat is the main purpose of accounts receivable in factoring? a. To meet immediate cash needs of the business b. To create an additional guarantee of collection c. To invest accounts receivable in another business d. To establish a legal proof for future use
- What is the main purpose of factoring in accounts receivables? a. To meet immediate cash needs of the business b. To create an additional guarantee of collection c. To invest accounts receivable in another business d. To establish a legal proof for future useWhich are liabililies to a bank? Select one: a. Vault cash and demand deposits O b. Demand and time deposits c. Capital stock and reserves d. Property and capital stock Clear my choiceFinancial institutions can secure liquidity through the following sources except: a. Liquidity assets. b. Use of excess cash from daily business operations/reserves. c. Use of cash from daily business operations. d. Inter-bank loans.
- Choose from the following list of terms and phrases to best complete the following statements. a. Cash c. Outstanding check e. Cash over and short b. Cash equivalents d. Liquidity f. Voucher system 1. The category includes currency, coins, and deposits in bank accounts. 2. The term refers to a company’s ability to pay for its current liabilities. 3. The category includes short-term, highly liquid investment assets that are readily convertible to a known cash amount and sufficiently close to their due dates so that their market value will not greatly change.When a bank grants a consumer loan to someone, it leads to: a. an indirect flow of funds O b. a rise in the bank's liabilities Oc a direct flow of funds Od. a rise in the bank's interest expenseWhich one is not the core functions of investment bank? * a.Selling of securities b. Accepting deposits c. Advisory services d. Marketing of securities
- The main purpose of factoring accounts receivable is a. To invest accounts receivable in another business b. To meet immediate cash needs c. To create an additional guarantee of collection d. To establish a legal proof for future usewhat the effect to asset, liability and owner's equity if the company receives cash from a bank loanWhich of the following is not normally increased by a cash inflow transaction? a) Advances from Customers b.) Unearned Revenue from Customer Loyalty Program c.)Unearned Revenue from Warranty Contracts d.)Deposits on Returnable Containers