Multiple choice

1) In managing cash and marketable securities, what should be the manager's primary concern? 

A.-Maximization of liquid assets

B.-Maximization of profit

C.-Acceptable return on investment

D.-Liquidity and safety

2) How would electronic funds transfer affect the use of "float"? 

A.-Decrease its use somewhat

B.-Increase its use somewhat

C.-Virtually eliminate its use

D.-Have no effect on its use

3) Dun & Bradstreet is known for providing 

A.-credit scoring reports that rank a company's payment habits relative to its peer group.

B.-interest rate information to cash managers.

C.-cash management systems to corporate treasurers.

D.-consumer credit reports to credit card companies.

4) The three primary policy variables to consider when extending credit include all of the following except 

A.-the level of inflation.

B.-credit standards.

C.-the terms of trade.

D.-collection policy.