Most Large Firms Hold a Cash Balance Greater Than Most

question 18

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.

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Definitions:

Withdrawal

A psychological or physical retreat from certain situations, interactions, or engagements, often used as a coping mechanism.

Erections

The physiological process where the penis becomes firm, engorged, and enlarged, often in a sexual context.

Ejaculations

In a biological context, it refers to the discharge of semen from the male reproductive tract. In language, it can also mean a sudden, short exclamation.

Orgasms

The climax of sexual stimulation, characterized by intense pleasure and the release of tension.