With Rates of Return So Low on Money Market Instruments

question 9

Essay

With rates of return so low on money market instruments, does it actually benefit a firm to pay close attention to cash balances?

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Definitions:

Demand Exceeds

A situation where the demand for a product or service surpasses its supply, often leading to stock shortages or increased prices.

No Demand

A market situation where there is no consumer desire or interest in purchasing a specific product or service.

Inconsistency

The state of being inconsistent; lack of uniformity or steadiness in actions, values, or outcomes.

Training

The process of teaching or developing in oneself or others, any skills and knowledge that relate to specific useful competencies.