It Is Important for Any fiRm to Determine Its Appropriate

question 87

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:

Isotonic Eccentric Contraction

A type of muscle contraction in which the muscle lengthens under tension, such as lowering a weight slowly.

Tension

The state of being stretched tight or the mental or emotional strain.

Complete Tetanus

A state of sustained muscle contraction without relaxation, usually induced by rapid, repeated stimulation.

Incomplete Tetanus

A state of muscle contraction characterized by rapid, continuous twitching of the muscle which does not reach maximal strength.