What Determines the Optimum Amount of Cash a Firm Should

question 26

Multiple Choice

What determines the optimum amount of cash a firm should hold?

• A)The motives for the use of the cash
• B)The firm's borrowing capacity
• C)a and b
• D)None of the above determines the optimum amount of cash a firm should hold

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Definitions:

HF

Commonly refers to hydrofluoric acid, a solution of hydrogen fluoride in water that is a highly corrosive acid.

HI

Hydrogen Iodide; a diatomic molecule consisting of one hydrogen atom and one iodine atom, known for its use as a reagent in organic chemistry reactions.

Acidic

Having the properties of an acid, which include a sour taste, the ability to turn litmus paper red, and the capability to donate a hydrogen ion (H+) in reactions.

pKa

A quantitative measure that indicates the strength of an acid in solution, specifically the acid's dissociation constant.