16. The period for a deposited check to clear through the commercial banking system causes which of the following types of floats? A. Mail float B. Transit float C. Disbursing float D. Processing float 17. A trade credit discount such as 3/10 net 40 means: A. a 3% penalty is due after 40 days. B. 10% discount for cash on delivery and a 3% discount for payment within 40 days. C. a 3% discount for payment within 10 days, and a 3% penalty if payment is made after 40 days. D. a 3% discount if payment is made within 10 days, otherwise, the total amount is due in 40 days. 18. Assume that liquid funds can be invested to yield 6%. If annual remittance checks total RM50 million, what is it worth for the firm to reduce float by 2 days? (Round to nearest RM1, use 365 days) A. RM1,643,836 B. RM 164,384 C. RM 16,438 D. RM1,644 19. A Spot transaction occurs when: A. one currency is deposited in a foreign bank. B. one currency is immediately exchanged for another currency. C. one currency is exchanged for another currency at a specified price. D. one currency is exchanged for another currency in 30,60 , or 90 days. 20. Assume that a British pound sterling () is worth RM5.40. If a new Proton X70 costs RM120,000, what is the cost in British pounds? (Round to nearest 1 ) A. 648,000 B. 222,200 C. 22,222 D. 6,480