Firms would need to hold zero cash for transaction purposes if all outgoing cash transactions could be:

Name: Firms would need to hold zero cash for transaction purposes if all outgoing cash transactions could be:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If outgoing cash transactions are perfectly synchronized with cash inflows, then firms would not need to hold any cash for transaction purposes. This would ensure that all cash outflows are covered by cash inflows, eliminating the need for any cash to be held for transaction purposes.

Firms Would Need to Hold Zero Cash for Transaction Purposes