A Disadvantage of Virtual Banks (Clicks) Is That ________

question 36

Multiple Choice

A disadvantage of virtual banks (clicks) is that ________.

• A) their hours are more limited than physical banks
• B) they are more secure than physical banks
• C) they are more costly to operate than physical banks
• D) customers worry about the security of on-line transactions

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Definitions:

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it, and convert the sale into cash through customer payments.

Bank Overdraft

A facility allowing a bank account holder to withdraw more money than is actually available in their account, typically subject to interest charges.

Current Liability

Financial obligations that are due within one year or within the normal operating cycle of a business.

Reconciled Cash Balance

The adjusted amount of cash on hand after accounting for discrepancies between the cash book and bank statement.