Most large firms hold a cash balance greater than most models imply because:
A) it is too difficult to estimate the costs of security transactions.
B) banks are compensated by account balances for payment of services.
C) corporations have few bank accounts and it is difficult to manage their cash.
D) cash is costless and need not be managed closely.
E) None of the above.
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
Q4: The cost of holding cash:
A)is the opportunity
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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