Most Large fiRms Hold a Cash Balance Greater Than Most

question 101

Multiple Choice

Most large firms hold a cash balance greater than most models imply because:

• A)it is too difficult to estimate the costs of security transactions.
• B)banks are compensated by account balances for payment of services.
• C)corporations have few bank accounts and it is difficult to manage their cash.
• D)cash is costless and need not be managed closely.
• E)None of the above.

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Definitions:

Social Problems

Issues that adversely affect the well-being of a significant number of people in a society, and that are often the subject of public debate and policy efforts.

Excuse

An explanation offered as a reason or justification for a fault or offense.

Misperceptions

Incorrect interpretations or understandings of a situation, person's words, or the world.

Ethics

The expression of the standards of right and wrong based on conduct and morals in a particular society.