Cash reserved to make payments to vendors is an example of precautionary demand.
Correct Answer:
Verified
Q225: Float, or money tied up in the
Q226: The cash manager's goal is to minimize
Q227: In a pledging agreement the borrower is
Q228: Carrying excess cash is convenient but expensive
Q229: A low level of cash may force
Q231: A firm's cash includes currency, coins, demand
Q232: Cash held for precautionary demand is to
Q233: The cash conversion cycle is shorter than
Q234: Compensating balances cannot normally be used for
Q235: The cash conversion cycle is the time
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents