Which of the following is a reason for diminishing liquidity in modern corporations?
A) Just-in-time inventory programs.
B) Better utilization of cash via computers.
C) Increased use of point-of-sale terminals.
D) All of the options are reasons for diminishing liquidity.

Question

Quizplus · Accepted Answer

All of the options listed contribute to diminishing liquidity in modern corporations. Just-in-time inventory programs reduce the need to hold large amounts of inventory, thereby reducing cash tied up in stock. Better utilization of cash via computers allows for more efficient cash management, reducing the need for large cash reserves. Increased use of point-of-sale terminals improves the speed and efficiency of transactions, further reducing the need for holding cash.

Which of the Following Is a Reason for Diminishing Liquidity