1. The transaction motive refers to the need to hold cash:

for daily operations.

for unforeseen investment opportunities.

as a safety margin.

for emergency situations.

2. Float is defined as the difference between the:

ledger balance and the available balance.

book balance and the ledger balance.

collections and disbursements for any given period of time.

available balance and the collected balance.

3. Which one of the following is a disbursement account into which funds are transferred from a master account only as the funds are needed to cover checks presented for payment?

Cash clearing account

Cash concentration account

Zero-balance account

Lockbox account