Firms are required to commit capital to funding cash balances just as they commit capital to fund inventory, receivables, and fixed assets.

Name: Firms are required to commit capital to funding cash balances just as they commit capital to fund inventory, receivables, and fixed assets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Firms need to hold cash balances to meet unexpected cash demands and maintain day-to-day operations, and they need to invest capital in order to maintain those balances.

Firms Are Required to Commit Capital to Funding Cash Balances