A Collecting Bank Is One _____

question 41

Multiple Choice

A collecting bank is one _____.

• A) that collects the amount of a check for its customers from the payor bank
• B) into which a check is deposited by its payee
• C) that handles checks, but not including payor and depository banks
• D) upon which a check is drawn; the drawee
• E) where banks exchange checks and drafts and settle accounts, owned by the member banks participating

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Definitions:

IRR Rule

A decision-making tool used in finance to evaluate investments, stating that a project is acceptable if its internal rate of return exceeds a predetermined threshold.

Internal Rate

NO. However, closely related term Internal Rate of Return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments.

Present Value

The value today of a sum promised at a specified time in the future given a rate of interest. The amount that would have to be deposited today at the specified interest rate to grow into the promised sum on the specified date.

Cash Inflows

Money or funds coming into a business from various sources, including sales, investments, financing, and operational activities.