It Is Important for Any Firm to Determine Its Appropriate

question 314

Multiple Choice

It is important for any firm to determine its appropriate target cash balance:

• A) In order to maximize its purchases of marketable securities.
• B) Because there is a trade-off between the benefit and cost of liquidity.
• C) Since most firms follow flexible policies of working capital management.
• D) Because of the float the firm gains when it writes cheques.
• E) Because of the fluctuation in interest rates on marketable securities.

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Definitions:

Bilateral Electroconvulsive Therapy

A form of electroconvulsive therapy in which electric currents are passed through the brain bilaterally (through both hemispheres) to induce a brief seizure, with the purpose of treating severe mental illnesses.

Electrical Current

The flow of electric charge, typically measured in amperes, through a conductor or medium.

Electroconvulsive Therapy (ECT)

A medical treatment most commonly used for severe major depression which involves brief electrical stimulation of the brain while the patient is under anesthesia.

Psychotic Patients

Individuals diagnosed with psychotic disorders, experiencing symptoms like hallucinations and delusions, affecting their perception of reality.