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In a general equilibrium model
Lockbox System
A service provided by banks to companies for the receipt of payment from customers, where payments are sent to a special post office box rather than to the company.
Treasury Bills
Short-term government securities issued at a discount from their face value, with maturities ranging from a few days to 52 weeks.
Collection Time
The average duration it takes for a company to collect payments owed by its customers, often measured in days.
Average Daily Receipts
The average amount of money a business receives on a day-to-day basis over a specified period.
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