Which of the Following Is the Technique for Reducing Collection

question 50

Multiple Choice

Which of the following is the technique for reducing collection float by having funds sent to several geographically situated regional banks and then transferring to a main concentration account in another bank?

• A) Lockbox system
• B) Concentration banking
• C) Wire transfers
• D) Collection float

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Definitions:

Reciprocity Norm

The reciprocity norm is a social norm that expects individuals to respond to each other in kind, returning benefits for benefits received.

Favor

An act of kindness beyond what is usual or expected, often involving giving someone an advantage or showing support.

Past

The period of time or a segment of history that has already occurred, distinguished from the present and future.

Social-Responsibility Norm

A societal expectation that people will help those who are dependent upon them or in need of assistance.