Which One of the Following Statements Is Correct

question 8

Multiple Choice

Which one of the following statements is correct?

• A) Firms cannot use lockboxes if they use cash concentration accounts.
• B) Firms prefer to increase processing delay on disbursements.
• C) Firms prefer to eliminate all types of float.
• D) Firms open regional offices so their employees can pick up lockbox payments throughout the day.
• E) The Check Clearing Act for the Century is designed to reduce the collection time to one day.

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Definitions:

Price Rises

An increase in the cost of goods or services in the market, often due to factors like inflation, increased demand, or higher production costs.

Equilibrium Price

The price at which the quantity demanded of a good equals the quantity supplied.

Quantity Demanded

Represents the total amount of a good or service that consumers are willing and able to purchase at a given price over a specific period of time.

Shortage Occurs

A market condition where the demand for a product exceeds its supply at a given price, leading to a situation where not all consumer demand can be met.