What Is the Difference Between a Lockbox System and Concentration

question 141

Multiple Choice

What is the difference between a lockbox system and concentration banking?

• A) In concentration banking, both physical collection and processing take place close to the customer but in a lockbox system, neither the collections nor processing take place close to the customer.
• B) In a lockbox system, customers' payments are physically collected close to them and much of the processing takes place close to the bank, but in concentration banking both physical collection and processing take place close to the bank.
• C) Concentration banking involves using several banks to fund a large loan and lockbox systems deal with the ability to speed up collections.
• D) None of the options.

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Definitions:

Erik Erikson

A developmental psychologist and psychoanalyst known for his theory on the psychosocial development of human beings, which outlines eight stages from infancy to adulthood with distinct challenges and tasks.

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A concept in psychology that refers to the overarching way individuals assess or interpret their experiences or the world around them.

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The awareness of one's own personality, emotions, motivations, and wishes.