Which of the Following Events Should Cause the Average Cash

question 21

Multiple Choice

Which of the following events should cause the average cash balance that minimizes total carrying costs to increase?

• A) A reduction in the opportunity cost of holding cash
• B) A reduction in total income
• C) A reduction in the cost of a deposit transaction
• D) An increase in the opportunity cost of holding cash
• E) A simultaneous and proportional increase in the cost of a deposit transaction and the opportunity cost of holding cash

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Definitions:

Scores

Quantitative measures used to assess performance, ability, or achievement in various fields.

Standardization

The process of implementing and developing technical standards based on the consensus of different parties to ensure that materials, products, processes, and services are fit for their purpose.

Interpreting Scores

The process of analyzing and understanding the significance of scores from tests or assessments in their given context.

Standardized Test

A form of test that is administered and scored in a consistent manner to ensure fairness and accuracy in measuring a specific skill or knowledge area.