BEC Financial Management Review 8

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Joens1313
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300234
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BEC Financial Management Review 8
Updated:
2015-04-08 00:49:42
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BEC Financial Management Review
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BEC Financial Management Review 8
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  1. What is a transaction balance?
    Balances associated with routine payments and collections are called transaction balances.
  2. Balances associated with routine payments and collections are called ---------------------.
    Balances associated with routine payments and collections are called transaction balances.
  3. What is a compensating balance?
    a specified minimum balance required by the bank to offset the cost of services such as check processing or lockbox.
  4. What is a speculative balance?
    cash balance that are held to allow an entity to take advantage of an unplanned bargain purchase
  5. what is the purpose of a marketable security?
    marketable securities are held as a cash substitute or a temporary investment.
  6. The better that an entity's ---------------------- is, the lower its need for transaction and precautionary balances.
    The better that an entity's cash flow forecast is, the lower its need for transaction and precautionary balances.
  7. The better that an entity's cash flow forecast is, the lower its need for transaction and -----------------------------------.
    The better that an entity's cash flow forecast is, the lower its need for transaction and precautionary balances.
  8. What is a float?
    A float is the difference between the amount on the depositors books and the balance according to the bank.
  9. A --------------- is the difference between the amount on the depositors books and the balance according to the bank.
    A float is the difference between the amount on the depositors books and the balance according to the bank.
  10. An entity's selection of securities depends on what factors?

    1. ----------------
    2. interest rate risk
    3. purchasing power
    4. liquidity risk
    5. Expected rate of return
    • 1. default risk
    • 2. interest rate risk
    • 3. purchasing power
    • 4. liquidity risk
    • 5. Expected rate of return
  11. An entity's selection of securities depends on what factors?

    1. default risk
    2. -----------------------
    3. purchasing power
    4. liquidity risk
    5. Expected rate of return
    • 1. default risk
    • 2. interest rate risk
    • 3. purchasing power
    • 4. liquidity risk
    • 5. Expected rate of return
  12. An entity's selection of securities depends on what factors?

    1. default risk
    2. interest rate risk
    3. -----------------
    4. liquidity risk
    5. Expected rate of return
  13. 1. default risk
    • 2. interest rate risk
    • 3. purchasing power
    • 4. liquidity risk
    • 5. Expected rate of return
  14. An entity's selection of securities depends on what factors?

    1. default risk
    2. interest rate risk
    3. purchasing power
    4. -----------------
    5. Expected rate of return
    • 1. default risk
    • 2. interest rate risk
    • 3. purchasing power
    • 4. liquidity risk
    • 5. Expected rate of return
  15. An entity's selection of securities depends on what factors?

    1. default risk
    2. interest rate risk
    3. purchasing power
    4. liquidity risk
    5. -----------------------
    • 1. default risk
    • 2. interest rate risk
    • 3. purchasing power
    • 4. liquidity risk
    • 5. Expected rate of return

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