The cost of holding cash:
A) is the opportunity cost of lost return.
B) is zero because it is the most liquid and desirable asset.
C) increases as cash holdings increase.
D) Both A and B.
E) Both A and C.
Correct Answer:
Verified
Q1: Collection float increases:
A)disbursement float.
B)bank cash.
C)book cash.
D)gross float
Q2: A firm with low cash balances will
Q3: A financial manager should be concerned about
Q6: Most large firms hold a cash balance
Q7: When a firm writes a check, there
Q8: If a firm has achieved its target
Q9: Marketability risk is synonymous with:
A)maturity risk.
B)default risk.
C)liquidity
Q10: The difference between bank cash and book
Q11: Which of the following is not an
Q15: Examples of cash disbursements do not include:
A)
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