Which of the Following Is NOT a Fundamental Factor Ignored

question 120

Multiple Choice

Which of the following is NOT a fundamental factor ignored by the target cash balance models?

• A) Firms have the option to borrow short-term to meet unexpected demands for cash.
• B) The costs and delays of trading securities have fallen dramatically since the advent of the Internet.
• C) Many large firms habitually use all or the majority of their available cash to purchase overnight securities.
• D) Models take into account that many firms must keep compensating balances in their deposit accounts as part of borrowing agreements with their banks.

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Definitions:

Amines

Organic compounds and functional groups that contain a basic nitrogen atom with a lone pair.

Genetic Material

The molecules responsible for inheritance and the biological characteristics of organisms, primarily DNA (deoxyribonucleic acid) and RNA (ribonucleic acid).

DNA

The molecule that carries genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Zygote

The initial cell formed when a new organism is produced by sexual reproduction, resulting from the union of sperm and egg cells.