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    Zero Balance

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    True/False

    A zero balance account is used by firms as an effective tool of cash management to reduce the amount of idle cash a firm might otherwise keep.

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    https://brainmass.com/business/finance/zero-balance-53048

    Solution Preview

    True/False

    A zero balance account is used by firms as an effective tool of cash management to reduce the amount of idle cash a firm might otherwise keep.

    True.

    In a Zero Balance Account (ZBA), a master account is set up to receive all checks coming into the system. As checks clear through the ZBA, funds are transferred ...

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    This solution answers a true/false question on zero balance.

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