©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
MBA 662 Final Exam Questions and
Answers 100% Pass
In managing cash and marketable securities what should be the manager's primary concern? -
Answer✔Safety and liquidity
Which of the following is not a valid reason for holding cash? - Answer✔• Transaction motive
• Compensating balances for banks
• Precautionary needs
• Conservation speculation
"Float" takes place because of which of the following reasons? - Answer✔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? - Answer✔• Lock-box
system
• Regional collection system
Major cost savings for consumers using automated clearinghouses is - Answer✔• Saving more
than 1 billion in postage
• Saving time paying bills through check writing
• Security of having the payments and deposits directly deposited or deducted from your
account
1
, ©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
Which of the following is not a factor influencing the selection of a marketable security? -
Answer✔· maturity
· minimum amount
· safety
· marketability
• yield
Which of the following securities typically trades on a discount basis? - Answer✔treasury bills
Money market funds - Answer✔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 - Answer✔◦ credit standards
◦ Terms of trade
◦ Collection policy
Which of the following is generally considered to be the least liquid of current assets? -
Answer✔Inventory
What is generally the largest source of short-term credit for small firms? - Answer✔Trade Credit
or accounts payable
What are the primary characteristics of bank loans to business firms? - Answer✔◦ Short term 1-
7 years
◦ Self-liquidating
◦ Compensating balances
◦ Interest charge usually variable
2
MBA 662 Final Exam Questions and
Answers 100% Pass
In managing cash and marketable securities what should be the manager's primary concern? -
Answer✔Safety and liquidity
Which of the following is not a valid reason for holding cash? - Answer✔• Transaction motive
• Compensating balances for banks
• Precautionary needs
• Conservation speculation
"Float" takes place because of which of the following reasons? - Answer✔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? - Answer✔• Lock-box
system
• Regional collection system
Major cost savings for consumers using automated clearinghouses is - Answer✔• Saving more
than 1 billion in postage
• Saving time paying bills through check writing
• Security of having the payments and deposits directly deposited or deducted from your
account
1
, ©JASONMcCONNELL 2025 ALL RIGHTS RESERVED
Which of the following is not a factor influencing the selection of a marketable security? -
Answer✔· maturity
· minimum amount
· safety
· marketability
• yield
Which of the following securities typically trades on a discount basis? - Answer✔treasury bills
Money market funds - Answer✔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 - Answer✔◦ credit standards
◦ Terms of trade
◦ Collection policy
Which of the following is generally considered to be the least liquid of current assets? -
Answer✔Inventory
What is generally the largest source of short-term credit for small firms? - Answer✔Trade Credit
or accounts payable
What are the primary characteristics of bank loans to business firms? - Answer✔◦ Short term 1-
7 years
◦ Self-liquidating
◦ Compensating balances
◦ Interest charge usually variable
2
