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CTP · Question #706

(Topic 8) Company ABC has recently started to experience a significant reduction in funds availability. Which of the following is MOST LIKELY to reduce funds availability?

The correct answer is C. Company no longer pre-encodes its checks for deposit. See the full explanation below for the reasoning.

Question

  • (Topic 8)

Company ABC has recently started to experience a significant reduction in funds availability. Which of the following is MOST LIKELY to reduce funds availability?

Options

  • ALedger balances have increased.
  • BCompany negotiated a later availability schedule.
  • CCompany no longer pre-encodes its checks for deposit.
  • DDeposits are arriving at bank later, but prior to cutoff time.

How the community answered

(35 responses)
  • A
    14% (5)
  • B
    3% (1)
  • C
    74% (26)
  • D
    9% (3)

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