When Bad Storms Slow the Check-Clearing Process,float Tends to ________

question 62

Multiple Choice

When bad storms slow the check-clearing process,float tends to ________ causing the Fed to initiate defensive open market ________.

• A)decrease;sales
• B)decrease;purchases
• C)increase;sales
• D)increase;purchases

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Definitions:

Accounts Receivable Period

The standard timeframe a company needs to gather owed payments from its customers.

Sales

The transactions involving the exchange of goods or services for money, representing the major source of revenue for a business.

Merchandise

Goods to be bought and sold in the course of business, typically in a retail or wholesale setting.

Inventory Purchases

Transactions involving buying goods to be sold in the normal course of business, typically counted as a current asset.