Efficient Funds Management Attempts to Reduce Mailing and Clearing Time

question 34

Multiple Choice

Efficient funds management attempts to reduce mailing and clearing time. Two methods do this by:

• A) moving collections and deposits closer together in concentration banks; and moving surplus funds quickly by wire transfers.
• B) moving mailing points to cross country locations and using depository drafts to transfer funds.
• C) drawing checks against zero balance accounts and using cross country mailing.
• D) wiring funds to zero balance accounts and using lockboxes in many cities.
• E) None of these.

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Definitions:

Pareto Chart

A bar graph where values are depicted in descending order of relative frequency, often used to highlight the most significant factors in a data set.

Stem-And-Leaf Plot

A graphical method of displaying quantitative data that splits each value into a "stem" (the leading digit or digits) and a "leaf" (the last digit).

Frequency Distribution

A summary of how often each value occurs in a data set, typically represented in a table or as a graph.

Dotplot

A graphical display of data using dots, where each dot represents one or more observations, allowing for the visualization of the distribution of the data set.