Mathematics · Cash Management
A large distributor is evaluating the cost-effectiveness of centralizing its cash balances. Currently, the distributor maintains 10 separate bank accounts at local branches, each with an average idle balance of 5,00,000 INR. The centralization through a Cash Management System will allow the distributor to operate with a single master account having a total target balance of 15,000 INR. The bank will charge 40,000 INR annually for the sweep facility and 10,000 INR for consolidated reporting. If the distributor can earn a 12% return by investing the surplus funds in marketable securities, calculate the net annual savings from centralization.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 12,80,000 INR
- 23,50,000 INR
- 34,20,000 INR
- 43,70,000 INR✓
Correct answer
3,70,000 INR
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Mathematics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Cash Management MCQs →Want more practice questions on Cash Management?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Mathematics · Cash Management