1
MBA 662-Final Questions with Answers (100% Correct
Answers)
In managing cash and marketable securities what should be the
manager's primary concern?— Answer: Safety and liquidity
Which of the following is not a valid reason for holding cash?—
Answer: • Transaction motive
• Compensating balances for banks
• Precautionary needs
• Conservation speculation
"Float" takes place because of which of the following reasons?—
Answer: a lag exists between writing a check and clearing it through
the banking system.
Which of the following is not a method of speeding up collections?—
Answer: • Lock-box system
• Regional collection system
© 2025 All rights reserved
, 2
Major cost savings for consumers using automated clearinghouses is—
Answer: • Saving more than 1 billion in postage
• Saving time paying bills through check writing
• Security of having the payments and deposits directly deposited or
deducted from your account
Which of the following is not a factor influencing the selection of a
marketable security?— Answer: · maturity
· minimum amount
· safety
· marketability
• yield
Which of the following securities typically trades on a discount
basis?— Answer: treasury bills
Money market funds— Answer: are short term investment accounts
that allow small investors to participate in buying large denomination
securities
© 2025 All rights reserved
MBA 662-Final Questions with Answers (100% Correct
Answers)
In managing cash and marketable securities what should be the
manager's primary concern?— Answer: Safety and liquidity
Which of the following is not a valid reason for holding cash?—
Answer: • Transaction motive
• Compensating balances for banks
• Precautionary needs
• Conservation speculation
"Float" takes place because of which of the following reasons?—
Answer: a lag exists between writing a check and clearing it through
the banking system.
Which of the following is not a method of speeding up collections?—
Answer: • Lock-box system
• Regional collection system
© 2025 All rights reserved
, 2
Major cost savings for consumers using automated clearinghouses is—
Answer: • Saving more than 1 billion in postage
• Saving time paying bills through check writing
• Security of having the payments and deposits directly deposited or
deducted from your account
Which of the following is not a factor influencing the selection of a
marketable security?— Answer: · maturity
· minimum amount
· safety
· marketability
• yield
Which of the following securities typically trades on a discount
basis?— Answer: treasury bills
Money market funds— Answer: are short term investment accounts
that allow small investors to participate in buying large denomination
securities
© 2025 All rights reserved
