For Efficiency of Operations and Better Control Over Cash, a Company

question 180

True/False

For efficiency of operations and better control over cash, a company should maintain only one bank account.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulating banks, maintaining the stability of the financial system, and providing financial services to depository institutions, the U.S. government, and foreign official institutions.

Forward Interest Rate

The interest rate agreed upon today for a loan that will start at a future date, often implied in the terms of a forward rate agreement.

Zero-Coupon Bond

Is a debt security that doesn't pay interest (a coupon) but is traded at a deep discount, providing profit at maturity when the bond is redeemed for its full face value.

Rate Of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.