Which of the Following Is a Reason for Diminishing Liquidity

question 48

Multiple Choice

Which of the following is a reason for diminishing liquidity in modern corporations?

• A) Low interest rates.
• B) Lower utilization of cash via computers.
• C) Greater utilization of cash via information systems.
• D) Inflation pushes more cash into inventory.

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Definitions:

Midpoint Formula

A method used to calculate the elasticity of demand or supply by dividing the percentage change in quantity demanded or supplied by the percentage change in price, using the average of the initial and final values.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Percentage Change

A mathematical calculation that indicates the degree of change over time, expressed as a proportion of the starting value.