Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy Premium Access
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
If a bank receives value for cheques which clear in five days but does not give value to the customer until day six, then it is an example of:
Correct
An example of forward value‐dating is when a bank receives value for cheques which clear in five days, but does not give value to the customer until day six.
Incorrect
An example of forward value‐dating is when a bank receives value for cheques which clear in five days, but does not give value to the customer until day six.
-
Question 2 of 10
2. Question
When a bank processes an outgoing payment request on one day but applies the debit to the customer’s account to a prior value date, it is an example of:
Correct
An example of back value‐dating is when a bank processes an outgoing payment request on one day but applies the debit to the customer’s account to a prior value date. Banks also back value transactions to correct errors or upon negotiation with customers.
Incorrect
An example of back value‐dating is when a bank processes an outgoing payment request on one day but applies the debit to the customer’s account to a prior value date. Banks also back value transactions to correct errors or upon negotiation with customers.
-
Question 3 of 10
3. Question
Availability is the date on which a company will have access to:
Correct
Availability is the date on which a company will have access to funds that have been deposited at the bank.
Incorrect
Availability is the date on which a company will have access to funds that have been deposited at the bank.
-
Question 4 of 10
4. Question
Finality is the time after which a payment is considered to become irrevocable and cannot be returned without:
Correct
Finality is the time after which a payment is considered to become irrevocable and cannot be returned without the permission of the beneficiary account holder.
Incorrect
Finality is the time after which a payment is considered to become irrevocable and cannot be returned without the permission of the beneficiary account holder.
-
Question 5 of 10
5. Question
What is applied to all methods of payment, electronic and physical, both forwards and backward in time and for international and domestic payments?
Correct
Value‐dating The practice of a bank dating a customer transaction at some date other than the date at which the bank itself lost or gained value. It is used by banks in some countries as a method of compensation. It can be applied to all methods of payment, electronic and physical, both forwards and backwards in time and for international and domestic payments.
Incorrect
Value‐dating The practice of a bank dating a customer transaction at some date other than the date at which the bank itself lost or gained value. It is used by banks in some countries as a method of compensation. It can be applied to all methods of payment, electronic and physical, both forwards and backwards in time and for international and domestic payments.
-
Question 6 of 10
6. Question
Which statement best describes an opportunity cost?
Correct
Opportunity cost is the loss of potential gain from other options when one alternative is chosen.
Incorrect
Opportunity cost is the loss of potential gain from other options when one alternative is chosen.
-
Question 7 of 10
7. Question
Select more than one answer:
When does the cash manager use the concept of opportunity cost? when or in weighing up benefits and potential savings of new products and services.Correct
The cash manager uses the concept of opportunity cost when quantifying the cost of inefficient cash management practices or in weighing up benefits and potential savings of new products and services
Incorrect
The cash manager uses the concept of opportunity cost when quantifying the cost of inefficient cash management practices or in weighing up benefits and potential savings of new products and services
-
Question 8 of 10
8. Question
Select more than one answer:
Identify different ways where a Cash manager uses the concept of ‘Time value of money’:Correct
Cash managers use this concept in a number of different ways:
Assessing the opportunity cost of float on collections
Assessing the value of trade discounts
Assessing the value of capital projectsIncorrect
Cash managers use this concept in a number of different ways:
Assessing the opportunity cost of float on collections
Assessing the value of trade discounts
Assessing the value of capital projects -
Question 9 of 10
9. Question
From a cash manager’s perspective, float refers to:
Correct
From a cash manager’s perspective, float refers to a delay between the start and completion of a specific phase or process occurring along the cash flow timeline.
Incorrect
From a cash manager’s perspective, float refers to a delay between the start and completion of a specific phase or process occurring along the cash flow timeline.
-
Question 10 of 10
10. Question
What are the TWO elements of managing cash management float?
Correct
Cash managers are primarily responsible for managing cash management float, which has two elements:
Disbursement float
The time lost between a payer (or payor) making a payment and the account being debited. Disbursement float results in an opportunity gain to the person disbursing.
Collection float
The time lost between a payer (or payor) making a payment and the beneficiary receiving value. Collection float results in an opportunity cost or loss to the person collecting.Incorrect
Cash managers are primarily responsible for managing cash management float, which has two elements:
Disbursement float
The time lost between a payer (or payor) making a payment and the account being debited. Disbursement float results in an opportunity gain to the person disbursing.
Collection float
The time lost between a payer (or payor) making a payment and the beneficiary receiving value. Collection float results in an opportunity cost or loss to the person collecting.