Quiz Ch 30 – T/F ACH System and Direct Deposits
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
True or false: Direct deposits are handled using the Automated Clearing House (ACH) system.
True or false: Direct deposits are handled using the Automated Clearing House (ACH) system.
True or false: The capital market is recognized as the marketplace for short-term investments.
True or false: Following the acquisition of a firm’s receivables by a factor, the customer of the firm makes payments directly to the factor.
True or false: Lockbox systems are implemented to streamline the collections process.
True or false: A commercial draft is fundamentally an instruction to make a payment.
True or false: Export credit insurance in the United States is furnished by the Export-Import Bank in partnership with a coalition of insurance firms known as the Foreign Credit Insurance Association (FCIA).
True or false: Fedwire serves as the conduit for interbank money transfers.
True or false: A commercial draft designated as a time draft implies an order for immediate payment.
True or false: Opting out of the cash discount offered on goods with terms 2/30, net 60 means customers are essentially taking a loan at an effective annual rate of around 2 percent.
True or false: “3/10, EOM, net 60” does NOT represent a valid set of trade credit terms.