Following the Consolidation That Resulted from the 2007-2009 Financial Crisis

question 54

Multiple Choice

Following the consolidation that resulted from the 2007-2009 financial crisis in the U.S., the 4 largest commercial banks share of total deposits was:

• A)75%.
• B)50%.
• C)40%.
• D)25%.

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Definitions:

Cash Cycle

The period between the purchase of inventory and the collection of accounts receivable from the sale of that inventory.

Inventory Period

The typical duration required for a firm to convert its stock into revenue.

Accounts Receivable Turnover

A financial metric that measures how often a company collects its average accounts receivable balance in a period.

Accounts Payable Turnover

A financial ratio that measures the rate at which a company pays off its suppliers by dividing total purchases by average accounts payable for the period.