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:

Fair Credit Reporting Act

A U.S. federal law established to ensure the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies.

Extend Credit

The provision of goods or services with the expectation that payment will be made in the future.

Creditworthiness

An assessment of the likelihood that a borrower can repay a loan or meet financial obligations.

Collection Agency

A business that pursues payments of debts owed by individuals or businesses.