Short term self liquidating loans are intended to
International cash management is more complex than domestic based cash management because of A. that allows companies to maintain zero balances in their checking accounts, with their excess cash moved into an interest earning account. that allows companies to write checks on zero balance accounts with the understanding that when the check is presented for payment, money will be moved from the interest bearing account to the appropriate payment account. that allows companies to move their lock box collections into an interest bearing checking account. When actual sales are greater than forecasted sales A. production schedules might have to be revised upward. Which of the following is not a valid reason for holding cash? long-term rates are being pushed up by federal reserve policy 16.
use long-term financing for all fixed assets and short-term financing for all other assets. finance a portion of permanent assets and short-term assets with short-term debt. use equity to finance fixed assets, long-term debt to finance permanent assets, and short-term debt to finance fluctuating current assets. use long-term financing for permanent current assets and fixed assets and a portion of the short-term fluctuating assets and use short-term financing for all other short-term assets. Generally, more use is made of short-term financing because A.
by borrowing Eurodollars at a lower rate than the U.
Dealer paper is sold directly to the lender by a finance company. Industrial companies, utility firms or finance companies too small to sell direct paper sell dealer paper. Multinational firms have found that they can lower borrowing costs A.
Characteristics of a money market deposit account include A.
generally a limit of three deposits or withdrawals per month.