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Because of Uncertainty About the Timing And/or the Amount of the Cash

Question 3

Multiple Choice

Because of uncertainty about the timing and/or the amount of the cash outlays, a financial institution must be prepared ________.


A) to have sufficient cash to satisfy its obligations.
B) to have sufficient projects to satisfy its capital budget constraints.
C) to have sufficient risk to satisfy its obligations.
D) to have sufficient risk to satisfy its conservative investors.

Correct Answer:

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