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In Which of the Following Cases Would the Owner of a Delicatessen

Question 21

Multiple Choice

In which of the following cases would the owner of a delicatessen hold more precautionary money balances?


A) if the store's credit line is cut in half by its bank
B) if receipts and expenditures are both expected to decrease proportionally
C) if yields on interest earning assets have substantially increased
D) if the rate of inflation has sharply increased
E) all of the above

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