Which of the following is not a standard method of transferring funds when using concentration banking?
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A. B. C. D.D
Concentration banking is a cash management technique in which a company centralizes its cash into one primary bank account, allowing for more efficient management of cash resources. When using concentration banking, there are several standard methods of transferring funds that can be used, including:
A. Depository transfer check (DTC): A DTC is a check that is drawn on one bank and deposited in another bank. The deposit is made using the check, and the funds are transferred from the bank on which the check was drawn to the bank where the check was deposited. This method is often used for large transfers between banks.
B. Automated clearinghouse electronic transfer (ACH): An ACH transfer is an electronic transfer of funds between banks. This method is often used for recurring payments such as payroll or mortgage payments.
C. Wire transfer: A wire transfer is an electronic transfer of funds between banks. This method is often used for large transfers or for urgent transfers that require immediate payment.
D. Payable through draft (PTD): A PTD is a check that is drawn on a company's account at one bank and is payable at another bank. This method is often used for making payments to suppliers or vendors.
Therefore, the answer to the question is D. Payable through draft (PTD) is not a standard method of transferring funds when using concentration banking. While a PTD is a method of payment, it is not a method of transferring funds between banks.