Which One of the Following Actions Is Indicative of a Restrictive

question 90

Multiple Choice

Which one of the following actions is indicative of a restrictive short-term financial policy?

• A)Granting increasing amounts of credit to customers
• B)Expanding the number of inventory items carried
• C)Increasing the firm's investment in the current accounts
• D)Minimizing the cash balances held by the firm
• E)Investing relatively large amounts in marketable securities

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Definitions:

Population Mean

The average value of a population attribute.

Population Standard Error

The standard deviation of a sampling distribution, measuring the dispersion of sample means around the population mean.

Confidence Interval

A range of values, derived from the statistics of observed data, that is likely to contain the value of an unknown population parameter.

Mean

The average of a set of numbers, calculated by dividing the sum of all values by the number of values.