(Topic 8) Which of the following factors would the cash manager consider when deciding whether to make a payment via Fedwire or ACH? 1.Cost of the payment 2.Payment due date 3.Availability of…

The correct answer is B. Precautionary. A firm's air conditioning unit breaks down unexpectedly and must be replaced immediately. What type of liquidity requirement is this an example of?

Manage Treasury Operations

Question

(Topic 8)

Which of the following factors would the cash manager consider when deciding whether to make a payment via Fedwire or ACH? 1.Cost of the payment 2.Payment due date 3.Availability of customer's funds 4.Loss of float

Options

ATransaction
BPrecautionary
CSpeculative
DOpportunity

How the community answered

(26 responses)

A
15% (4)
B
77% (20)
C
4% (1)
D
4% (1)

Explanation

A firm's air conditioning unit breaks down unexpectedly and must be replaced immediately. What type of liquidity requirement is this an example of?

Topics

#Fedwire#ACH#payment method selection#wire transfer

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