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Home  arrow Student Resources  arrow Chapter 9  arrow Multiple choice questions

Multiple choice questions

Try the multiple choice questions below to test your knowledge of Chapter 9. Once you have completed the test, click on 'Submit Answers for Grading' to get your results.

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This activity contains 24 questions.

Question 1.
Which of the following is least likely to be considered a short-term marketable security?


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Question 2.
The optimal balance of marketable securities held to take care of probable deficiencies in the firm's cash account is referred to as the __________ segment in the firm's portfolio of short-term marketable securities.


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Question 3.
The marketable securities available for unassigned purposes at the current time is referred to as the __________ segment in the firm's portfolio of short-term marketable securities.


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Question 4.
Which of the following is not a standard method of transferring funds when using concentration banking?


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Question 5.
Which would be an inappropriate investment for temporarily idle corporate cash that will be used to pay quarterly dividends three months from now?


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Question 6.
Which of the following marketable securities is issued by the U.S. federal government?


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Question 7.
Which of the following was not suggested by John Maynard Keynes as a reason for holding cash?


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Question 8.
Which of the following statements most accurately describes the modern approach to cash management?


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Question 9.
Collection float is the __________.


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Question 10.
Deposit float is the __________.


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Question 11.
Availability float is the __________.


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Question 12.
Which of the following is not a technique to speed up collections?


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Question 13.
Concentration banking occurs when the firm __________.


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Question 14.
The marketable securities held for meeting controllable outflows such as taxes or dividends is referred to as the __________ segment in the firm's portfolio of short-term marketable securities.


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Question 15.
Eurodollars are best described as __________.


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Question 16.
Which of the following statements concerning remote disbursement and controlled disbursement is correct?


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Question 17.
The field of Electronic Commerce (EC) is awash with acronyms (i.e., a word formed from the initial letter or letters of a series of successive words). Which of the following acronyms does not belong with the other Electronic Commerce-related acronyms?


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Question 18.
Which of the following statements is most correct regarding outsourcing?


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Question 19.
A check-like instrument that is drawn against the payor and not against a bank, as is a check, is referred to as a __________.


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Question 20.
The electronic funds transfer using a two-way communications system is referred to as a __________.


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Question 21.
The minimum denomination for a U.S. Treasury bill is __________.


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Question 22.
The minimum denomination for a negotiable certificate of deposit at most money-center banks is __________.


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Question 23.
A collection service provided by the firm's financial institution that receives electronic payments and accompanying remittance data and communicates this to the company in a specific format is referred to as what?


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Question 24.
A $1,000, 13-week (91 days) United States Treasury bill can be purchased for $981. Calculate the bond equivalent yield (BEY).


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