The Immediate Use, or Same Day Value, of Collections by Larger

question 36

Multiple Choice

The immediate use, or same day value, of collections by larger Canadian firms is facilitated by:

• A) Setting up a concentrator account with a chartered bank.
• B) Setting up a lockbox agreement.
• C) Using debit cards rather than credit cards.
• D) Mailing the collection cheques immediately to the firms' headquarters.
• E) Setting up a trustee account with an investment bank.

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Definitions:

Market

A place or virtual space where buyers and sellers come together to trade goods, services, or financial instruments, determining the prices through supply and demand.

External Cost

Costs of a transaction that affect people who are not part of the transaction.

Private Value

The estimate of worth that an individual or company assigns to an asset, good, or service, reflecting personal assessments rather than market-driven prices.

Social Cost

The total cost to society, including both private and external costs, of producing a good or service.