Which two of the following are the primary reasons why firms temporarily accumulate large cash surpluses?
I.cyclical activities
II.desire to invest funds
III.daily operations
IV.fixed asset purchases
A) I and III only
B) II and IV only
C) I and II only
D) III and IV only
E) I and IV only
Correct Answer:
Verified
Q20: Why do firms need liquidity?
I.to meet compensating
Q21: Cash concentration accounts:
A)tend to increase the funds
Q22: The main purpose of a cash concentration
Q23: A money market preferred stock:
A)has a floating
Q24: A repurchase agreement generally has a maximum
Q26: Which one of the following statements is
Q27: Lockboxes:
A)should be geographically located close to a
Q28: Municipal bonds:
A)are less liquid than U.S. Treasury
Q29: Which one of the following statements is
Q31: A zero-balance account:
A) is used to cover
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