Which of the Following Is the Best Definition of Zero-Balance

question 371

Multiple Choice

Which of the following is the best definition of zero-balance account?

• A) The costs associated with holding too little cash.
• B) An automated teller machine card used at the point of purchase to avoid the use of cash. As this is not a credit card, money must be available in the user's bank account.
• C) A chequing account in which a zero balance is maintained by transfers of funds from a master account in an amount only large enough to cover cheques presented.
• D) The need to hold cash to satisfy normal disbursement and collection activities associated with a firm's ongoing operations
• E) A firm's desired cash level as determined by the trade-off between carrying costs and shortage costs.

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Definitions:

Managerial Effectiveness

The ability of managers to achieve desired outcomes and targets through efficient and effective utilization of resources.

Professional Effectiveness

The degree to which an individual achieves the desired outcomes and goals in their professional role with efficiency and competency.

Interpersonal Relations

The interactions and relationships that occur between individuals in various social, professional, or personal contexts.

Communication Competency

The ability to effectively convey, receive, and interpret messages, information, and ideas through various forms and channels.