A Firm with Unpredictable Cash Flows Is Trying to Set

question 71

Multiple Choice

A firm with unpredictable cash flows is trying to set upper and lower limits for cash balances.Which of the following factors will result in upper and lower limits being closer to each other?

• A)variance of the cash flows is low
• B)cost of trading securities is high
• C)interest rate is low
• D)current cash balance is low

---

Definitions:

TB Exposure

Contact with the bacteria Mycobacterium tuberculosis, which causes tuberculosis, potentially leading to infection.

Blood Test

A laboratory analysis performed on a blood sample to evaluate general health, diagnose disease, or monitor medical conditions.

Spread of Infection

The process by which infectious agents are transmitted from a reservoir (source) to a susceptible host, potentially leading to disease development.

Patient Care

A broad term encompassing the services provided by healthcare professionals to maintain or improve a patient’s health.