Question two Which of the following statements is CORRECT? Select one: A. Collection float refers to an immediate increment in a firm's available balance when a check is received. B. The basic cost of collection float to the firm is the opportunity cost of not being able to use the cash. C. Instantaneous electronic funds transfer would only eliminate all types of float if the transaction occurs during normal business hours. D. Float management only involves controlling a company's collection of cash.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question two Which of the following statements is CORRECT?
Select one:
A. Collection float refers to an immediate increment in a firm's available balance when a check is received.
B. The basic cost of collection float to the firm is the opportunity cost of not being able to use the cash.
C. Instantaneous electronic funds transfer would only eliminate all types of float if the transaction occurs during normal business hours.
D. Float management only involves controlling a company's collection of cash.

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