The Optimal Cash Replenishment Level Will Decrease with All of the Following

question 55

Multiple Choice

The optimal cash replenishment level will decrease with all of the following changes except ____.

• A) The transaction cost decreases
• B) The annual demand for cash decreases
• C) The interest rate decreases
• D) All of these will decrease the optimal cash replenishment level.

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Definitions:

1933 Act

Also known as the Securities Act of 1933, it is a U.S. law enacted as part of the New Deal, requiring securities sold to the public through a formal offer to be registered and to disclose relevant financial information.

Registration

The process of recording information officially, often pertaining to a company, security, or property, to ensure legal recognition.

1933 Act

Also known as the Securities Act of 1933, it is a federal law enacted to ensure more transparency in financial statements and prevent fraud in the securities market.

Disclosure

The action of making new or secret information known, often required in legal and financial transactions to ensure transparency.