The definition of demand deposits.

Question

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Answer 1

Question

Chapter 17, Problem 1QTD

a.

Summary Introduction

To discuss: The definition of demand deposits.

a.

Expert Solution

Explanation of Solution

The demand deposits are defined as the funds an individual or firm save in their bank checking accounts.

b.

Summary Introduction

To discuss: The definition of compensating balance.

b.

Expert Solution

Explanation of Solution

Compensating balances are defined as the minimum amount of balances held by a firm in its checking account that repay the bank for different services delivered to the firm, for example, processing the checks written by the firm. The bank moreover loans or invests these balances and subsequently creates premium income for itself.

c.

Summary Introduction

To discuss: The definition of disbursement float.

c.

Expert Solution

Explanation of Solution

A disbursement float or positive float happens when the firm writes the checks and, in light of the fact that of the deferrals or delays, there is an excess of bank net collected balances over the balances appeared on the company's books.

d.

Summary Introduction

To discuss: The definition of deposit float.

d.

Expert Solution

Explanation of Solution

A deposit float or negative float is an abundance of the balances appeared on the company's books over the bank net collected balances.

e.

Summary Introduction

To discuss: The definition of lockbox.

e.

Expert Solution

Explanation of Solution

A lockbox is considered as a post office box kept up by a bank to deal with customer instalments for the firm. The bank gets the instalments that is received at the post office number of times each day and stores the instalments in the company's account. The utilization of a lock box decreases mailing system, payment preparing and check clearing times.

f.

Summary Introduction

To discuss: The definition of wire transfer.

f.

Expert Solution

Explanation of Solution

A wire transfer is the sending of funds starting with one bank then onto the next bank by electronic means through the Federal Reserve or a private bank wire system. The wire transfers are commonly utilized in moving the funds from a firm's local bank accounts to its concentration bank account.

g.

Summary Introduction

To discuss: The definition of depository transfer.

g.

Expert Solution

Explanation of Solution

It is an unsigned, non- negotiable check that is utilized to move reserves between accounts at various banks. Depository transfer checks are now and then utilized in moving funds from a firm's local bank accounts to its concentration bank balance.

h.

Summary Introduction

To discuss: The definition of zero balance system.

h.

Expert Solution

Explanation of Solution

A zero balance system is a unified disbursement framework in which all installments are issued from "zero balance" accounts. Precisely enough funds are transferred to a zero balance account every day to cover the checks that have cleared the account on that day, thus leaving the account with a zero balance toward the day's end.

i.

Summary Introduction

To discuss: The definition of draft.

i.

Expert Solution

Explanation of Solution

A draft is considered as an instrument, like a check that is used for making instalments. In contrast to a check, which is payable on demand, the bank should provide the draft to the firm for acknowledgment before instalment is made. Post acknowledgment of the draft, the firm can store the funds required to cover the instalment.

j.

Summary Introduction

To discuss: The definition of automated clearinghouse.

j.

Expert Solution

Explanation of Solution

It is a computer-based option in contrast to a paper check collection and the clearing system. An ACH sorts check-like electronic pictures and trades electronic records of payments and receipts.

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Answer 2

Question

Chapter 17, Problem 1QTD

a.

Summary Introduction

To discuss: The definition of demand deposits.

a.

Expert Solution

Explanation of Solution

The demand deposits are defined as the funds an individual or firm save in their bank checking accounts.

b.

Summary Introduction

To discuss: The definition of compensating balance.

b.

Expert Solution

Explanation of Solution

Compensating balances are defined as the minimum amount of balances held by a firm in its checking account that repay the bank for different services delivered to the firm, for example, processing the checks written by the firm. The bank moreover loans or invests these balances and subsequently creates premium income for itself.

c.

Summary Introduction

To discuss: The definition of disbursement float.

c.

Expert Solution

Explanation of Solution

A disbursement float or positive float happens when the firm writes the checks and, in light of the fact that of the deferrals or delays, there is an excess of bank net collected balances over the balances appeared on the company's books.

d.

Summary Introduction

To discuss: The definition of deposit float.

d.

Expert Solution

Explanation of Solution

A deposit float or negative float is an abundance of the balances appeared on the company's books over the bank net collected balances.

e.

Summary Introduction

To discuss: The definition of lockbox.

e.

Expert Solution

Explanation of Solution

A lockbox is considered as a post office box kept up by a bank to deal with customer instalments for the firm. The bank gets the instalments that is received at the post office number of times each day and stores the instalments in the company's account. The utilization of a lock box decreases mailing system, payment preparing and check clearing times.

f.

Summary Introduction

To discuss: The definition of wire transfer.

f.

Expert Solution

Explanation of Solution

A wire transfer is the sending of funds starting with one bank then onto the next bank by electronic means through the Federal Reserve or a private bank wire system. The wire transfers are commonly utilized in moving the funds from a firm's local bank accounts to its concentration bank account.

g.

Summary Introduction

To discuss: The definition of depository transfer.

g.

Expert Solution

Explanation of Solution

It is an unsigned, non- negotiable check that is utilized to move reserves between accounts at various banks. Depository transfer checks are now and then utilized in moving funds from a firm's local bank accounts to its concentration bank balance.

h.

Summary Introduction

To discuss: The definition of zero balance system.

h.

Expert Solution

Explanation of Solution

A zero balance system is a unified disbursement framework in which all installments are issued from "zero balance" accounts. Precisely enough funds are transferred to a zero balance account every day to cover the checks that have cleared the account on that day, thus leaving the account with a zero balance toward the day's end.

i.

Summary Introduction

To discuss: The definition of draft.

i.

Expert Solution

Explanation of Solution

A draft is considered as an instrument, like a check that is used for making instalments. In contrast to a check, which is payable on demand, the bank should provide the draft to the firm for acknowledgment before instalment is made. Post acknowledgment of the draft, the firm can store the funds required to cover the instalment.

j.

Summary Introduction

To discuss: The definition of automated clearinghouse.

j.

Expert Solution

Explanation of Solution

It is a computer-based option in contrast to a paper check collection and the clearing system. An ACH sorts check-like electronic pictures and trades electronic records of payments and receipts.

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Answer 3

Question

Chapter 17, Problem 1QTD

a.

Summary Introduction

To discuss: The definition of demand deposits.

a.

Expert Solution

Explanation of Solution

The demand deposits are defined as the funds an individual or firm save in their bank checking accounts.

b.

Summary Introduction

To discuss: The definition of compensating balance.

b.

Expert Solution

Explanation of Solution

Compensating balances are defined as the minimum amount of balances held by a firm in its checking account that repay the bank for different services delivered to the firm, for example, processing the checks written by the firm. The bank moreover loans or invests these balances and subsequently creates premium income for itself.

c.

Summary Introduction

To discuss: The definition of disbursement float.

c.

Expert Solution

Explanation of Solution

A disbursement float or positive float happens when the firm writes the checks and, in light of the fact that of the deferrals or delays, there is an excess of bank net collected balances over the balances appeared on the company's books.

d.

Summary Introduction

To discuss: The definition of deposit float.

d.

Expert Solution

Explanation of Solution

A deposit float or negative float is an abundance of the balances appeared on the company's books over the bank net collected balances.

e.

Summary Introduction

To discuss: The definition of lockbox.

e.

Expert Solution

Explanation of Solution

A lockbox is considered as a post office box kept up by a bank to deal with customer instalments for the firm. The bank gets the instalments that is received at the post office number of times each day and stores the instalments in the company's account. The utilization of a lock box decreases mailing system, payment preparing and check clearing times.

f.

Summary Introduction

To discuss: The definition of wire transfer.

f.

Expert Solution

Explanation of Solution

A wire transfer is the sending of funds starting with one bank then onto the next bank by electronic means through the Federal Reserve or a private bank wire system. The wire transfers are commonly utilized in moving the funds from a firm's local bank accounts to its concentration bank account.

g.

Summary Introduction

To discuss: The definition of depository transfer.

g.

Expert Solution

Explanation of Solution

It is an unsigned, non- negotiable check that is utilized to move reserves between accounts at various banks. Depository transfer checks are now and then utilized in moving funds from a firm's local bank accounts to its concentration bank balance.

h.

Summary Introduction

To discuss: The definition of zero balance system.

h.

Expert Solution

Explanation of Solution

A zero balance system is a unified disbursement framework in which all installments are issued from "zero balance" accounts. Precisely enough funds are transferred to a zero balance account every day to cover the checks that have cleared the account on that day, thus leaving the account with a zero balance toward the day's end.

i.

Summary Introduction

To discuss: The definition of draft.

i.

Expert Solution

Explanation of Solution

A draft is considered as an instrument, like a check that is used for making instalments. In contrast to a check, which is payable on demand, the bank should provide the draft to the firm for acknowledgment before instalment is made. Post acknowledgment of the draft, the firm can store the funds required to cover the instalment.

j.

Summary Introduction

To discuss: The definition of automated clearinghouse.

j.

Expert Solution

Explanation of Solution

It is a computer-based option in contrast to a paper check collection and the clearing system. An ACH sorts check-like electronic pictures and trades electronic records of payments and receipts.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 17, Problem 1QTD

a.

Summary Introduction

To discuss: The definition of demand deposits.

a.

Expert Solution

Explanation of Solution

The demand deposits are defined as the funds an individual or firm save in their bank checking accounts.

b.

Summary Introduction

To discuss: The definition of compensating balance.

b.

Expert Solution

Explanation of Solution

Compensating balances are defined as the minimum amount of balances held by a firm in its checking account that repay the bank for different services delivered to the firm, for example, processing the checks written by the firm. The bank moreover loans or invests these balances and subsequently creates premium income for itself.

c.

Summary Introduction

To discuss: The definition of disbursement float.

c.

Expert Solution

Explanation of Solution

A disbursement float or positive float happens when the firm writes the checks and, in light of the fact that of the deferrals or delays, there is an excess of bank net collected balances over the balances appeared on the company's books.

d.

Summary Introduction

To discuss: The definition of deposit float.

d.

Expert Solution

Explanation of Solution

A deposit float or negative float is an abundance of the balances appeared on the company's books over the bank net collected balances.

e.

Summary Introduction

To discuss: The definition of lockbox.

e.

Expert Solution

Explanation of Solution

A lockbox is considered as a post office box kept up by a bank to deal with customer instalments for the firm. The bank gets the instalments that is received at the post office number of times each day and stores the instalments in the company's account. The utilization of a lock box decreases mailing system, payment preparing and check clearing times.

f.

Summary Introduction

To discuss: The definition of wire transfer.

f.

Expert Solution

Explanation of Solution

A wire transfer is the sending of funds starting with one bank then onto the next bank by electronic means through the Federal Reserve or a private bank wire system. The wire transfers are commonly utilized in moving the funds from a firm's local bank accounts to its concentration bank account.

g.

Summary Introduction

To discuss: The definition of depository transfer.

g.

Expert Solution

Explanation of Solution

It is an unsigned, non- negotiable check that is utilized to move reserves between accounts at various banks. Depository transfer checks are now and then utilized in moving funds from a firm's local bank accounts to its concentration bank balance.

h.

Summary Introduction

To discuss: The definition of zero balance system.

h.

Expert Solution

Explanation of Solution

A zero balance system is a unified disbursement framework in which all installments are issued from "zero balance" accounts. Precisely enough funds are transferred to a zero balance account every day to cover the checks that have cleared the account on that day, thus leaving the account with a zero balance toward the day's end.

i.

Summary Introduction

To discuss: The definition of draft.

i.

Expert Solution

Explanation of Solution

A draft is considered as an instrument, like a check that is used for making instalments. In contrast to a check, which is payable on demand, the bank should provide the draft to the firm for acknowledgment before instalment is made. Post acknowledgment of the draft, the firm can store the funds required to cover the instalment.

j.

Summary Introduction

To discuss: The definition of automated clearinghouse.

j.

Expert Solution

Explanation of Solution

It is a computer-based option in contrast to a paper check collection and the clearing system. An ACH sorts check-like electronic pictures and trades electronic records of payments and receipts.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 17, Problem 1QTD

a.

Summary Introduction

To discuss: The definition of demand deposits.

a.

Expert Solution

Explanation of Solution

The demand deposits are defined as the funds an individual or firm save in their bank checking accounts.

b.

Summary Introduction

To discuss: The definition of compensating balance.

b.

Expert Solution

Explanation of Solution

Compensating balances are defined as the minimum amount of balances held by a firm in its checking account that repay the bank for different services delivered to the firm, for example, processing the checks written by the firm. The bank moreover loans or invests these balances and subsequently creates premium income for itself.

c.

Summary Introduction

To discuss: The definition of disbursement float.

c.

Expert Solution

Explanation of Solution

A disbursement float or positive float happens when the firm writes the checks and, in light of the fact that of the deferrals or delays, there is an excess of bank net collected balances over the balances appeared on the company's books.

d.

Summary Introduction

To discuss: The definition of deposit float.

d.

Expert Solution

Explanation of Solution

A deposit float or negative float is an abundance of the balances appeared on the company's books over the bank net collected balances.

e.

Summary Introduction

To discuss: The definition of lockbox.

e.

Expert Solution

Explanation of Solution

A lockbox is considered as a post office box kept up by a bank to deal with customer instalments for the firm. The bank gets the instalments that is received at the post office number of times each day and stores the instalments in the company's account. The utilization of a lock box decreases mailing system, payment preparing and check clearing times.

f.

Summary Introduction

To discuss: The definition of wire transfer.

f.

Expert Solution

Explanation of Solution

A wire transfer is the sending of funds starting with one bank then onto the next bank by electronic means through the Federal Reserve or a private bank wire system. The wire transfers are commonly utilized in moving the funds from a firm's local bank accounts to its concentration bank account.

g.

Summary Introduction

To discuss: The definition of depository transfer.

g.

Expert Solution

Explanation of Solution

It is an unsigned, non- negotiable check that is utilized to move reserves between accounts at various banks. Depository transfer checks are now and then utilized in moving funds from a firm's local bank accounts to its concentration bank balance.

h.

Summary Introduction

To discuss: The definition of zero balance system.

h.

Expert Solution

Explanation of Solution

A zero balance system is a unified disbursement framework in which all installments are issued from "zero balance" accounts. Precisely enough funds are transferred to a zero balance account every day to cover the checks that have cleared the account on that day, thus leaving the account with a zero balance toward the day's end.

i.

Summary Introduction

To discuss: The definition of draft.

i.

Expert Solution

Explanation of Solution

A draft is considered as an instrument, like a check that is used for making instalments. In contrast to a check, which is payable on demand, the bank should provide the draft to the firm for acknowledgment before instalment is made. Post acknowledgment of the draft, the firm can store the funds required to cover the instalment.

j.

Summary Introduction

To discuss: The definition of automated clearinghouse.

j.

Expert Solution

Explanation of Solution

It is a computer-based option in contrast to a paper check collection and the clearing system. An ACH sorts check-like electronic pictures and trades electronic records of payments and receipts.

Answer 6

Chapter 17, Problem 1QTD

a.

Summary Introduction

To discuss: The definition of demand deposits.

a.

Expert Solution

Explanation of Solution

The demand deposits are defined as the funds an individual or firm save in their bank checking accounts.

Answer 7

Chapter 17, Problem 1QTD

a.

Summary Introduction

To discuss: The definition of demand deposits.

Answer 8

a.

Expert Solution

Explanation of Solution

The demand deposits are defined as the funds an individual or firm save in their bank checking accounts.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

Summary Introduction

To discuss: The definition of compensating balance.

b.

Expert Solution

Explanation of Solution

Compensating balances are defined as the minimum amount of balances held by a firm in its checking account that repay the bank for different services delivered to the firm, for example, processing the checks written by the firm. The bank moreover loans or invests these balances and subsequently creates premium income for itself.

Answer 13

b.

Summary Introduction

To discuss: The definition of compensating balance.

Answer 14

b.

Expert Solution

Explanation of Solution

Compensating balances are defined as the minimum amount of balances held by a firm in its checking account that repay the bank for different services delivered to the firm, for example, processing the checks written by the firm. The bank moreover loans or invests these balances and subsequently creates premium income for itself.

Answer 15

b.

Expert Solution

Answer 16

b.

Expert Solution

Answer 17

Expert Solution

Answer 18

c.

Summary Introduction

To discuss: The definition of disbursement float.

c.

Expert Solution

Explanation of Solution

A disbursement float or positive float happens when the firm writes the checks and, in light of the fact that of the deferrals or delays, there is an excess of bank net collected balances over the balances appeared on the company's books.

Answer 19

c.

Summary Introduction

To discuss: The definition of disbursement float.

Answer 20

c.

Expert Solution

Explanation of Solution

A disbursement float or positive float happens when the firm writes the checks and, in light of the fact that of the deferrals or delays, there is an excess of bank net collected balances over the balances appeared on the company's books.

Answer 21

c.

Expert Solution

Answer 22

c.

Expert Solution

Answer 23

Expert Solution

Answer 24

d.

Summary Introduction

To discuss: The definition of deposit float.

d.

Expert Solution

Explanation of Solution

A deposit float or negative float is an abundance of the balances appeared on the company's books over the bank net collected balances.

Answer 25

d.

Summary Introduction

To discuss: The definition of deposit float.

Answer 26

d.

Expert Solution

Explanation of Solution

A deposit float or negative float is an abundance of the balances appeared on the company's books over the bank net collected balances.

Answer 27

d.

Expert Solution

Answer 28

d.

Expert Solution

Answer 29

Expert Solution

Answer 30

e.

Summary Introduction

To discuss: The definition of lockbox.

e.

Expert Solution

Explanation of Solution

A lockbox is considered as a post office box kept up by a bank to deal with customer instalments for the firm. The bank gets the instalments that is received at the post office number of times each day and stores the instalments in the company's account. The utilization of a lock box decreases mailing system, payment preparing and check clearing times.

Answer 31

e.

Summary Introduction

To discuss: The definition of lockbox.

Answer 32

e.

Expert Solution

Explanation of Solution

A lockbox is considered as a post office box kept up by a bank to deal with customer instalments for the firm. The bank gets the instalments that is received at the post office number of times each day and stores the instalments in the company's account. The utilization of a lock box decreases mailing system, payment preparing and check clearing times.

Answer 33

e.

Expert Solution

Answer 34

e.

Expert Solution

Answer 35

Expert Solution

Answer 36

f.

Summary Introduction

To discuss: The definition of wire transfer.

f.

Expert Solution

Explanation of Solution

A wire transfer is the sending of funds starting with one bank then onto the next bank by electronic means through the Federal Reserve or a private bank wire system. The wire transfers are commonly utilized in moving the funds from a firm's local bank accounts to its concentration bank account.

Answer 37

f.

Summary Introduction

To discuss: The definition of wire transfer.

Answer 38

f.

Expert Solution

Explanation of Solution

A wire transfer is the sending of funds starting with one bank then onto the next bank by electronic means through the Federal Reserve or a private bank wire system. The wire transfers are commonly utilized in moving the funds from a firm's local bank accounts to its concentration bank account.

Answer 39

f.

Expert Solution

Answer 40

f.

Expert Solution

Answer 41

Expert Solution

Answer 42

g.

Summary Introduction

To discuss: The definition of depository transfer.

g.

Expert Solution

Explanation of Solution

It is an unsigned, non- negotiable check that is utilized to move reserves between accounts at various banks. Depository transfer checks are now and then utilized in moving funds from a firm's local bank accounts to its concentration bank balance.

Answer 43

g.

Summary Introduction

To discuss: The definition of depository transfer.

Answer 44

g.

Expert Solution

Explanation of Solution

It is an unsigned, non- negotiable check that is utilized to move reserves between accounts at various banks. Depository transfer checks are now and then utilized in moving funds from a firm's local bank accounts to its concentration bank balance.

Answer 45

g.

Expert Solution

Answer 46

g.

Expert Solution

Answer 47

Expert Solution

Answer 48

h.

Summary Introduction

To discuss: The definition of zero balance system.

h.

Expert Solution

Explanation of Solution

A zero balance system is a unified disbursement framework in which all installments are issued from "zero balance" accounts. Precisely enough funds are transferred to a zero balance account every day to cover the checks that have cleared the account on that day, thus leaving the account with a zero balance toward the day's end.

Answer 49

h.

Summary Introduction

To discuss: The definition of zero balance system.

Answer 50

h.

Expert Solution

Explanation of Solution

A zero balance system is a unified disbursement framework in which all installments are issued from "zero balance" accounts. Precisely enough funds are transferred to a zero balance account every day to cover the checks that have cleared the account on that day, thus leaving the account with a zero balance toward the day's end.

Answer 51

h.

Expert Solution

Answer 52

h.

Expert Solution

Answer 53

Expert Solution

Answer 54

i.

Summary Introduction

To discuss: The definition of draft.

i.

Expert Solution

Explanation of Solution

A draft is considered as an instrument, like a check that is used for making instalments. In contrast to a check, which is payable on demand, the bank should provide the draft to the firm for acknowledgment before instalment is made. Post acknowledgment of the draft, the firm can store the funds required to cover the instalment.

Answer 55

i.

Summary Introduction

To discuss: The definition of draft.

Answer 56

i.

Expert Solution

Explanation of Solution

A draft is considered as an instrument, like a check that is used for making instalments. In contrast to a check, which is payable on demand, the bank should provide the draft to the firm for acknowledgment before instalment is made. Post acknowledgment of the draft, the firm can store the funds required to cover the instalment.

Answer 57

i.

Expert Solution

Answer 58

i.

Expert Solution

Answer 59

Expert Solution

Answer 60

j.

Summary Introduction

To discuss: The definition of automated clearinghouse.

j.

Expert Solution

Explanation of Solution

It is a computer-based option in contrast to a paper check collection and the clearing system. An ACH sorts check-like electronic pictures and trades electronic records of payments and receipts.

Answer 61

j.

Summary Introduction

To discuss: The definition of automated clearinghouse.

Answer 62

j.

Expert Solution

Explanation of Solution

It is a computer-based option in contrast to a paper check collection and the clearing system. An ACH sorts check-like electronic pictures and trades electronic records of payments and receipts.