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MBA 662-Final Questions and Answers (100%
Correct Answers) Already Graded A+
In managing cash and marketable securities what should be the
manager's primary concern? Ans: Safety and liquidity
Which of the following is not a valid reason for holding cash? Ans: •
Transaction motive
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• Compensating balances for banks
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• Precautionary needs
• Conservation speculation
"Float" takes place because of which of the following reasons? Ans: a
lag exists between writing a check and clearing it through the banking
system.
Which of the following is not a method of speeding up collections? Ans:
• Lock-box system
• Regional collection system
Major cost savings for consumers using automated clearinghouses is Ans:
• Saving more than 1 billion in postage
• Saving time paying bills through check writing
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• Security of having the payments and deposits directly deposited or
deducted from your account
Which of the following is not a factor influencing the selection of a
marketable security? Ans: · maturity
· minimum amount
· safety
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· marketability
• yield
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Which of the following securities typically trades on a discount basis?
Ans: treasury bills
Money market funds Ans: are short term investment accounts that allow
small investors to participate in buying large denomination securities
The three primary policy variables to consider when extending credit
include all of the following except Ans: ◦ credit standards
◦ Terms of trade
◦ Collection policy
Which of the following is generally considered to be the least liquid of
current assets? Ans: Inventory
1
MBA 662-Final Questions and Answers (100%
Correct Answers) Already Graded A+
In managing cash and marketable securities what should be the
manager's primary concern? Ans: Safety and liquidity
Which of the following is not a valid reason for holding cash? Ans: •
Transaction motive
© 2026 Assignment Expert
• Compensating balances for banks
Guru01 - Stuvia
• Precautionary needs
• Conservation speculation
"Float" takes place because of which of the following reasons? Ans: a
lag exists between writing a check and clearing it through the banking
system.
Which of the following is not a method of speeding up collections? Ans:
• Lock-box system
• Regional collection system
Major cost savings for consumers using automated clearinghouses is Ans:
• Saving more than 1 billion in postage
• Saving time paying bills through check writing
, For Expert help and assignment handling,
2
• Security of having the payments and deposits directly deposited or
deducted from your account
Which of the following is not a factor influencing the selection of a
marketable security? Ans: · maturity
· minimum amount
· safety
© 2026 Assignment Expert
· marketability
• yield
Guru01 - Stuvia
Which of the following securities typically trades on a discount basis?
Ans: treasury bills
Money market funds Ans: are short term investment accounts that allow
small investors to participate in buying large denomination securities
The three primary policy variables to consider when extending credit
include all of the following except Ans: ◦ credit standards
◦ Terms of trade
◦ Collection policy
Which of the following is generally considered to be the least liquid of
current assets? Ans: Inventory
