Which Is Not a Cash Management Activity

question 13

Multiple Choice

Which is not a cash management activity?

• A)Purchase of inventory.
• B)Purchase of land.
• C)Payment of taxes.
• D)Receipt of interest on cash equivalents.

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Definitions:

M2

A metric assessing the volume of monetary assets available, comprising both physical cash, deposits in checking accounts, and liquid assets like savings deposits and money market investments.

M3

A broad measure of money supply that includes M2 (cash, checking deposits, and easily convertible near money) plus large time deposits, institutional money market funds, and other larger liquid assets.

Small Denomination

Currency or securities issued in low nominal values, making them more accessible for small transactions or savings.

Large Denomination

References currency or financial instruments issued in large nominal amounts, often used in high-value transactions.