The Checks Received in a Lockbox Are Deposited

question 52

Multiple Choice

The checks received in a lockbox are deposited:

• A)into a local bank and then transferred electronically to a concentration account.
• B)into a local bank and immediately invested in short-term investments.
• C)as soon as they are posted to the customer's account.
• D)the following day and immediately invested.
• E)directly into an investment account.

---

Definitions:

Fair Insurance Policy

An insurance contract that is both equitable to the insurer and insured, ensuring that the terms and conditions are just and reasonable to all parties involved.

Premium

The amount paid periodically to the insurer by the insured for covering his risk.

Expected Income

The amount of money an individual or entity anticipates earning over a certain period.

Probability

The measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.