A Firm Finds That Its Customer Base Is Growing in Geographical

Multiple Choice

A firm finds that its customer base is growing in geographical terms and needs to reduce its float by obtaining cheques from receiving locations near the customers, rather than having them send their cheques directly to the firm's main office. This setup is called (a) :

A) Lockbox arrangement.
B) Wire transfer arrangement.
C) Cash concentration.
D) Overnight mail.
E) Compensating balance.