Gemini Inc

question 22

Multiple Choice

Gemini Inc.'s optimal cash transfer amount, using the Baumol model, is $60,000.The firm's fixed cost per cash transfer of marketable securities to cash is $180.In addition, the total estimated cash costs (transfers and carrying cost) for the firm, based on 16 transactions per year, are $5,760.On what opportunity cost of holding cash was this analysis based?

• A) 19.2%
• B) 10.4%
• C) 6.3%
• D) 12.1%
• E) 9.6%

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Definitions:

Cognitive Psychology

The study of thought processes, such as how memory works and what people notice.

Social Psychology

Social psychology is the study of how individuals think, feel, and behave in social contexts, including the influence of social interactions on human behavior and mental processes.

Cognitive Sociology

An area of sociology that focuses on the social construction of reality, exploring how individual cognition and societal phenomena influence each other.

Cognitive Anthropology

A branch of anthropology that studies how people perceive, think about, and understand the world around them.