Firms Would Need to Hold Zero Cash When Transactions Related

question 10

Multiple Choice

Firms would need to hold zero cash when transactions related needs are:

• A)greater than cash inflows.
• B)less than cash inflows.
• C)not perfectly synchronized with cash inflows.
• D)perfectly synchronized with cash inflows.
• E)None of the above.

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Definitions:

External Locus of Control

An external locus of control refers to the belief that one's successes or failures result from external factors beyond one's control, rather than one's own efforts.

Internal Locus of Control

A belief that one has control over their own life and outcomes, as opposed to external forces having that control.

Free Will

The power or ability to make choices free from certain constraints, suggesting a form of autonomy or self-determination.

Type A Personality

Type A personality is characterized by a constant feeling of working against the clock and a strong sense of competitiveness.