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Cash & Liquidity Management Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What are mutual funds?

Question 2 2. What are the motives to hold cash related to the day-to-day operations of the business?

Question 3 3. How is cash management different than liquidity management?

Question 4 4. Which term refers to how quickly and easily an asset can be converted to cash?

Question 5 5. Which financial statement analyzes currency only transactions?

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Question 6 6. Why is idle cash a bad investment?

Question 7 7. How are default risk and maturity related?

Question 8 8. What did the federal legislation Check 21 allow financial institutions to do?

Question 9 9. What is a minimum amount of cash a lender requires a business to hold as a term of a loan or line of credit?

Question 10 10. What is collection float?

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Question 11 11. If company A is sending money to Company B, then what is the disbursement float for Company A?

Question 12 12. If management holds cash to protect against a potential future demand on the business, this is an example of which of the following?

Question 13 13. If you've written $18,000 in checks that you don't see coming out of your bank account, and received $12,000 in checks that you have deposited into your bank account, but that haven't cleared yet, then what is your net float?

Question 14 14. Which of the following is NOT an impact of Check 21?

Question 15 15. Which short-term security allows for overnight investing?

Cash & Liquidity Management Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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