Adam Smith Claimed That

question 73

Multiple Choice

Adam Smith claimed that:

• A) governments, not market forces, should determine the directions, volume, and composition of international trade.
• B) a nation could trade advantageously if it had a comparative advantage.
• C) market forces, not government controls, should determine direction, volume, and the composition of international trade.
• D) customers' tastes are affected by income levels.
• E) two of the above.

Identify the reasons for holding cash and the concept of precautionary demand for cash.

Understand how lockbox systems and float management can improve a firm’s cash management.

Recognize the trade-offs involved in carrying either too much or too little cash.

Grasp the financial implications of different short-term financing options and cash management practices.