Match the Term with Its Definition

question 31

Multiple Choice

Match the term with its definition.
-The number of days, on average, that a business takes to pay its accounts payable

• A)cash conversion period
• B)days in inventory
• C)days in payables
• D)days sales outstanding (average collection period)
• E)lock box
• F)working capital cycle
• G)working capital management

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Definitions:

Economic Growth

The increase in a country's output of goods and services over time, reflecting improvements in the standard of living and the economy's health.

Deposit Insurance

A protection scheme for bank depositors that guarantees the safety of deposited funds up to a certain limit in the event of a bank failure.

Financial Risk

The possibility of losing money on an investment or business venture.

Open Market Operations

Technique in which the Fed buys or sells government bonds to affect the supply of money and credit.