1: Which one of the following statements is correct?

Short-term assets that trade in the money market account mature in two years or less.

Corporations are not permitted to use money market mutual funds but can use bank money market accounts.

Firms sometimes create a temporary cash surplus because they are saving funds for major expenditures.

Banks forbid the transfer of excess funds from a chequing account into an investment account on a daily basis.

Cyclical firms increase their long-term financing such that they continually have a cash surplus.

2:

Which one of the following does NOT typically match the conditions of a marketable security:

Treasury bills

Money market fund

Bankers Acceptances

Commercial Paper

5-Year Government bonds

3:

When the available cash balance at the bank is less than the book balance, this is called:

Deficit

Disbursement Float

Collection Float

Net float

Surplus