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question 13

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Directions: Choose the best answer based on the information you read in Chapter Seventeen. ​ "Technology has given us a lot of gifts it has also created some real drains on our time"


Definitions:

Cash Surpluses

Occurs when a company has more cash inflow than outflow, leading to excess liquidity.

Liquidity

The simplicity of turning an asset into cash without impacting its market value.

Money Market

A segment of the financial market where short-term financial instruments with high liquidity and short maturities are traded.

Float Motive

The rationale for holding money in transaction accounts to satisfy daily operational cash flow needs.

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