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:

Projective Personality

Projective Personality assessments involve tests that use ambiguous stimuli to elicit responses that reveal aspects of an individual's personality, based on the projection of unconscious processes.

Objective Personality

This refers to personality assessments that are scored using standardized, objective measures, as opposed to subjective judgment.

Millon Adolescent Clinical Inventory

A psychological assessment tool specifically designed for the evaluation of personality, psychopathology, and concerns unique to adolescents.

Projective Personality

An approach to personality assessment that interprets people's responses to ambiguous stimuli to uncover underlying thoughts, feelings, and traits.