Which One of the Following Statements Is Correct Concerning Zero-Balance

question 34

Multiple Choice

Which one of the following statements is correct concerning zero-balance accounts?

• A) Each zero-balance account is offset by a compensating balance account.
• B) Zero-balance accounts are used for depositing incoming funds.
• C) A master account must be used in conjunction with a zero-balance account.
• D) Zero-balance accounts are used solely in conjunction with a lockbox system.
• E) Zero-balance accounts are still required to maintain a minimal balance.

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Definitions:

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Social Exchange Theory

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