The cost of holding cash:
A) is the opportunity cost of the lost investment income.
B) is zero because it is the most liquid asset a firm can hold.
C) decreases as cash holdings increase.
D) increases as market rates decline.
E) is irrelevant in today's electronic world.
Correct Answer:
Verified
Q2: When a firm writes a check,there is
Q3: Firms hold cash to satisfy the transaction
Q4: The fastest but most expensive way for
Q5: Firms would need to hold zero cash
Q6: All the following can create disbursement float
Q7: By getting closer to the source of
Q8: Firms hold cash,in part,to satisfy compensating balance
Q9: Average daily float can be calculated as:
A)Average
Q10: Which one of these probably has reduced
Q11: Determining the appropriate cash balance involves assessing
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