Which of the Following Statements Concerning "Zero Balance" Systems Is

question 2

Multiple Choice

Which of the following statements concerning "zero balance" systems is (are) correct?

• A) Zero balance systems help utilize disbursement float more effectively.
• B) Exactly enough funds are transferred into the zero balance accounts each day to cover the checks that have cleared.
• C) The function of the concentration account is to receive all deposits coming into the zero balance system.
• D) All of these are correct.

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Definitions:

Incentives

Motivational factors or mechanisms that encourage individuals or groups to behave in a certain way or to take specific actions.

Lump-Sum Taxes

Taxes that are the same amount for everyone, regardless of the taxpayer’s income level or ability to pay.

Marginal Tax Rates

The percentage of tax applied to the last dollar earned, indicating the fraction of any additional income that will be taken in taxes.

Inflation-Adjusted

An adjective describing the modification of financial figures to reflect changes in the purchasing power of money, allowing for comparison over time.