Which of the Following Is Correct About Wire Transfer of Funds

question 27

Multiple Choice

Which of the following is correct about wire transfer of funds, given that wire transfer saves three days, the annual interest rate is 6 percent, and the cost of wire transfer is $20?

• A)wire transfers should be preferred for amounts exceeding $2,400
• B)depository transfer cheques should be preferred for amounts under $121,667
• C)wire transfers should be preferred for amounts exceeding $40,556
• D)depository transfers should be preferred for amounts exceeding $121,667

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Definitions:

Before Delivery

A phase in a transaction or process that occurs prior to the transfer of goods or completion of service delivery.

Service Revenue

Income earned from providing services as opposed to selling goods.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time.

Cash Collected

The total amount of money received by a company during a specific period.