Which One of the Following Is True Concerning a Controlled

question 106

Multiple Choice

Which one of the following is true concerning a controlled disbursement account?

• A)The number of checks that can be disbursed on any one day is limited.
• B)The bank will inform the firm of the amount that needs to be transferred on a daily basis.
• C)The amount that can be disbursed on any given day is limited to the balance in the account when the bank opens in the morning.
• D)The total number of checks that can be written in any one month is limited.
• E)The amount of the disbursements is limited to the amount the firm has available on its bank line of credit.

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Definitions:

Inflation Rate

The rate at which the expense of goods and services mounts, leading to decreased potency of purchasing power.

Nominal Interest Rate

The interest rate before adjustment for inflation, representing the actual percentage earned or paid on a financial investment or loan.

Consumer Price Index (CPI)

A measure of the overall cost of the goods and services bought by a typical consumer.

Inflation Rate

The percentage increase in the price of goods and services over time, which leads to a decrease in the ability to purchase.