What Is the Difference Between a Lockbox System and Concentration

question 33

Multiple Choice

What is the difference between a lockbox system and concentration banking?

• A)In concentration banking, both physical collection and processing take place close to the customer but in a lockbox system, neither the collections nor processing take place close to the customer.
• B)In a lockbox system, customers' payments are physically collected close to them and much of the processing takes place close to the bank, but in concentration banking both physical collection and processing take place close to the bank.
• C)Concentration banking involves using several banks to fund a large loan and lockbox systems deal with the ability to speed up collections.
• D)None of these.

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Definitions:

Axial

"Axial" refers to positions or orientations along the axis of a molecule, usually in cyclic compounds, opposed to equatorial positions which are off the axis.

Equatorial

Referring to the position of substituents in a cyclohexane ring, where they are oriented parallel to the equator of the molecule, leading to less steric strain.

DEPT-135

A specialized NMR spectroscopy technique used to differentiate between CH, CH2, and CH3 groups in molecules.

Quaternary

Refers to the fourth-order structure in chemistry or the presence of four different groups attached to a central carbon atom.