Cash flow does not rely on which of the following? Multiple Choice The efficiency of the banking system. The speed at which suppliers and creditors process checks. The payment arrangements of customers. The monetary policy of the Federal Reserve.

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25 April, 20:22

Cash flow does not rely on which of the following? Multiple Choice The efficiency of the banking system. The speed at which suppliers and creditors process checks. The payment arrangements of customers. The monetary policy of the Federal Reserve.

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Sariah Bernard · Answer 1

A

Explanation:

The efficiency of the banking system is not a determinant of cash flows. However, the speed at which customers process checks can lead to either delay or accelleration of receipts and payments thus affecting cash flows. The payment arrangment of customers can impact on cash flows as a longer debtors collection period will lead to decrease in cash inflows and vice versa. Monetary policy can affect cash flows as the tools for monetary policies can affect the cash supply in the economy thereby affecting cash flows either positively or negatively.