Concentration banking:

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Concentration banking:
A. Increases idle balances
B. Moves excess funds from a concentration bank to regional banks
C. Is less important during periods of rising interest rates
D. improves control over corporate cash


Answer : D

Question 137 ( Topic 1 )
Which would be an appropriate investment for temporarily idle cash that will be used to pay quarterly dividends three months from now?
A. A long-term Aaa-rated corporate bond with a current annual yield of 9.4 percent
B. A 30-year Treasury bond with a current annual yield of 8.7 percent
C. Ninety-day commercial paper with a current annual yield of 6.2 percent
D. Common stock that has been appreciating in price 8 percent annually, on average, and paying a quarterly dividend that is the equivalent of a 5 percent annual yield


Answer : C

Question 138 ( Topic 1 )
According to the Bond Equivalent Yield (BEY) method, the yield on a $1,000, 13-week US Treasury bill purchased for $960 would be closest to:
A. 16 Percent
B. 16.7 Percent
C. 17 Percent
D. 17.8 Percent


Answer : B

Question 139 ( Topic 1 )
Accounts receivable conversion (a.k.a., check conversion) is the conversion of a paper check to
A. An electronic check image
B. A "substitute check"
C. An ACH debit transaction
D. A foreign currency


Answer : C

Question 140 ( Topic 1 )
It is a type of flexible mortgage where the payments increase for a specified period of time and then level off. What is it?
A. Flexible payment mortgage
B. Graduated payment mortgage
C. Constant payment mortgage
D. Variable payment mortgage


Answer : B