Which of the Following Is True Concerning Transfer Mechanisms

question 1

Multiple Choice

Which of the following is true concerning transfer mechanisms?

• A) The firm must choose the mechanism that offers the highest earnings on the increased funds' availability.
• B) The firm must choose the mechanism that offers the lowest costs.
• C) The firm must balance the marginal costs vs. the marginal benefits and select the one with the highest marginal profit.
• D) In practice, most companies use wire transfers for large transfers of funds from lockbox systems and EDTs for high-volume, low-dollar transfers from small deposit banks.
• E) Both (c) and (d) are true.

---

Definitions:

Unemployment

Unemployment refers to the situation when individuals who are capable of working and are actively seeking work are unable to find employment.

Inflation

A broad upsurge in pricing with a corresponding fall in the worth of money.

Short-run Phillips Curve

A graphical representation showing the inverse relationship between unemployment and inflation rates in the short term.

Inflation Expectations

Inflation expectations are the rate at which people—consumers and investors—expect the general level of prices to change in the future.