The Financing Section of a Cash Budget Is Needed If

question 165

Multiple Choice

The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less than

• A) the prior years.
• B) management's minimum required balance.
• C) the amount needed to avoid a service charge at the bank.
• D) the industry average.

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Definitions:

Transaction Demand

The demand for money as a medium of exchange, influenced by the level of economic activity.

Branch Banking

The operation of a banking service through multiple branches located in different areas, offering a wide range of services to customers across locations.

States

Individual territorial units constituting a federal union, such as those that make up the United States, each with its own government and a degree of autonomy.

Money Supply

The entire sum of available monetary assets in an economy, comprising cash, coins, and the amounts held in checking and savings accounts, at a specific point.