On Any Given Day, a Firm Receives Numerous Checks Worth

question 89

Multiple Choice

On any given day, a firm receives numerous checks worth an average combined total of $5,900. The funds from the deposited checks are generally available after 1.5 days. Every day, the firm mails out checks totaling $4,400 that generally take 3 days to clear the bank. What is the amount of the collection float?

• A) $4,400
• B) $4,450
• C) $8,850
• D) $13,250
• E) $13,400

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Definitions:

Budget Constraint

A representation of all the combinations of goods and services that a consumer can afford with a fixed income and prices.

Indifference Curve

A graph representing different bundles of goods between which a consumer is indifferent, showing combinations that give the consumer the same level of satisfaction.

Income

The amount of money or its equivalent received during a period of time in exchange for labor, goods, or services, or as profit on capital.

Indifference Curves

Graphical representations in economics showing combinations of goods among which a consumer is indifferent, helping to analyze consumer choices.