Which of the following is an advantage of a decentralized disbursement system?

• A.The elimination of idle cash balances at local banks
• B.The ease of obtaining cash position information
• C.Local manager autonomy
• D.Reduced operating costs

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Which of the following cash concentration transfers is MOST LIKELY to result in a bank ledger overdraft?

• A.A wire transfer of prior day's balances
• B.An ACH transfer of anticipated deposits
• C.An ACH transfer of one-day available funds
• D.A DTC of current day's lockbox deposits

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Which of the following is NOT one of the three goals of a disbursement system?

• A.Fraud prevention
• B.Centralize payments
• C.Information access
• D.Bank relationship management

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When estimating the cost of capital, which of the following financial resources would probably NOT be included in the cost of capital calculation?

• A.Short-term debt
• B.Long-term debt
• C.Common stock
• D.Preferred stock

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The Cash Manager of ABC Logistics, Inc. sets a daily cash position by noon. All departments have been given an 11 a.m. cut-off for presenting wire requests and 2 p.m. for ACH requests. A wire request came in at 3:30 p.m. to make an insurance premium payment, in order to receive a discount. What liquidity reserve requirement is impacted?

• A.Regulatory
• B.Opportunistic
• C.Precautionary
• D.Transaction

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