Question

True or False.....

1. "Float" has been largely reduced because of electronic payments and improvements in B2B business relationships.

2. Proper management of sales, receivables, payables, and inventory form the basis of cash flow.

3. Computerized cash management and electronic funds transfer allow firms to carry smaller cash balances.

4. Only the market segmentation theory has any significant impact on interest rates.

5. Short-term interest rates have historically been more volatile than long-term rates.

6. Interest rates and inflation are iversely related.