A. A lock box is a means of collecting cash from customers and is not related to a compensating balance.

B. A lock-box system is used to speed up cash collections by reducing the amount of time that a check is outstanding after it is mailed by the customer. By having lock-boxes in various parts of the country, the time spent in the mail is reduced.

C. A lock-box system requires that checks be sent through the mail to a specific post office box. Because it uses the mail system it increases the risk of a check being lost in the mail.

D. A lock-box system is a manner in which checks are received from customers through the mail. It does not require late night deposits.