Which of the Following Is Not a Reason for a Firm

question 2

Multiple Choice

Which of the following is not a reason for a firm to hold cash balances?

• A)To cover routine payments and collections.
• B)To earn high rates of interest.
• C)To meet compensating balance requirements of banks.
• D)To provide a safety stock in the event of unforeseen fluctuations into cash flows.
• E)To take advantage of bargain purchases that might arise.

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Definitions:

Dorsal Surface

The dorsal surface refers to the back side of an organism or the upper side of body parts that lie horizontally.

Ventral Surface

The front or abdomen side of the body in animals; opposite of dorsal.

Midline

An imaginary line that divides the body into equal right and left halves.

Underlying Fascia

The connective tissue located beneath the skin and muscles, which encloses and separates muscle layers, providing structural support and facilitating movement.