Cash Management Quiz

What is 'float' in the context of cash management?

• The total cash on hand

• The difference between book balance and bank balance

• Cash invested in stocks

• Cash that is tied up in long-term investments

What distinguishes non-recourse factoring from recourse factoring?

• Non-recourse does not carry credit risk; recourse does.

• Non-recourse allows for higher commissions.

• Recourse implies instant cash conversion.

• Both 1 & 2

Which activity is classified as investing in the cash flow statement?

• Cash receipts from sales

• Assets acquisition

• Cash dividends paid

• Debt repayment

Which of the following is NOT a disadvantage of digital money?

• Cybersecurity risks

• Transaction fees

• Inaccessibility in rural areas

• Instant transaction confirmation

What type of account maintains a zero balance for transaction optimization?

• Current Account

• Zero-balance Account (ZBA)

• Foreign Currency Account

• Fixed Deposit

In a corporate credit card structure, what relationship do sub-limits have with master limits?

• Sub-limits are independent of master limits.

• Sub-limits can exceed master limits.

• Sub-limits derive from master limits.

• Sub-limits are irrelevant to master limits.

Which service is NOT typically included in cash management products?

• Salary Transfer Services

• Investment Brokerage

• Chequebook Services

• Utility Payments

Which account type undergoes daily transfers to maintain a zero balance status?

• Transaction-Balance Account (TBA)

• Fixed Deposit Account

• Zero-Balance Account (ZBA)

• Call Account

What is a disadvantage of both recourse and non-recourse factoring?

• Maintenance of high credit risk

• Decreased cash conversion rates

• Intermediary service fees

• Increased liquidity issues

In cross-border cash pooling, which is a disadvantage?

• Currency conversion fees

• Merger regulations

• Loan agreements

• Market competition