Firms hold cash to satisfy the transaction motive.This means that cash is held to:
A) meet disbursements for normal operations.
B) balance the flow between cash inflows and outflows.
C) meet unexpected emergency cash needs.
D) meet disbursements for normal operations and to balance the flow between cash inflows and outflows.
E) offset fees that would otherwise be charged by the firm's bank.
Correct Answer:
Verified
Q1: The cost of holding cash:
A)is the opportunity
Q2: When a firm writes a check,there is
Q4: The fastest but most expensive way for
Q5: Firms would need to hold zero cash
Q6: All the following can create disbursement float
Q7: By getting closer to the source of
Q8: Firms hold cash,in part,to satisfy compensating balance
Q9: Average daily float can be calculated as:
A)Average
Q10: Which one of these probably has reduced
Q11: Determining the appropriate cash balance involves assessing
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