The Introduction of ATMs Reduced The

question 263

Multiple Choice

The introduction of ATMs reduced the:

• A)menu costs of inflation.
• B)shoe-leather costs of inflation.
• C)unit-of-account costs of inflation.
• D)seignorage.

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Definitions:

Cash Management

The strategy of collecting, managing, and investing cash in a way that enables the company to meet its financial obligations while maximizing liquidity.

Lockbox System

A lockbox system is a banking service used by companies to expedite the collection and processing of accounts receivable by having checks mailed directly to a bank-operated address.

Collection Time

The average period that it takes for a business to receive payments owed, in terms of receivables, from its customers and clients.

Preauthorized Payments

Financial arrangements allowing a payee to automatically withdraw money from a payer's bank account for recurring bills or subscriptions.