Final answer:Cash flow does not rely on the monetary policy of the Federal Reserve but is directly influenced by customer payment arrangements, banking system efficiency, and the processing speed of suppliers and creditors. The banking system plays a crucial role in the flow of money and liquidity in the economy, which affects business operations. Hence, the correct option is b.Explanation:Cash flow is a critical aspect of any business and can be influenced by several factors. However, cash flow does not rely on the monetary policy of the Federal Reserve. The Federal Reserve's monetary policy may affect general economic conditions and indirectly influence an organization's operations, but it does not have a direct impact on the day-to-day cash flow that depends on operational transactions. On the other hand, cash flow is directly affected by the payment arrangements of customers, the efficiency of the banking system which enables the smooth transfer of funds, and the speed at which suppliers and creditors process checks, as these factors influence how quickly an organization can access liquid funds.Banks play a vital role in ensuring efficient transactions. They act as intermediaries that facilitate the flow of money within the economy, making it possible for businesses to function without the need to maintain large reserves of physical cash. The use of checking and savings accounts along with instruments like direct withdrawals, checks, and debit cards allow for a diverse range of transactions to occur, improving liquidity for individuals and businesses alike. This efficiency contributes to the rapidity with which money circulates, affecting the cash flow of businesses....

Unlock to view answer

Unlock full access for 72 hours, watch your grades skyrocket.

For just $0.99 cents, get access to the powerful quizwhiz chrome extension that automatically solves your homework using AI. Subscription renews at $5.99/week.