Which of the Following Is NOT a Fundamental Factor Ignored

question 120

Multiple Choice

Which of the following is NOT a fundamental factor ignored by the target cash balance models?

• A) Firms have the option to borrow short-term to meet unexpected demands for cash.
• B) The costs and delays of trading securities have fallen dramatically since the advent of the Internet.
• C) Many large firms habitually use all or the majority of their available cash to purchase overnight securities.
• D) Models take into account that many firms must keep compensating balances in their deposit accounts as part of borrowing agreements with their banks.

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Definitions:

Job Satisfaction

The level of contentment individuals feel with their job, which can influence their motivation, performance, and likelihood to remain in the position.

Middle Managers

Employees who manage other managers or teams and serve as the link between senior management and the operational staff.

Work Units

Smaller segments or groups within an organization, each focusing on a particular task or function contributing to the organization's goals.

Team Leaders

Individuals responsible for guiding, coordinating, and motivating their team members to achieve set objectives.