Gemini Inc

question 14

Multiple Choice

Gemini Inc.'s optimal cash transfer amount, using the Baumol model, is $60,000.The firm's fixed cost per cash transfer of marketable securities to cash is $180, and the total cash needed for transactions annually is $960,000.On what opportunity cost of holding cash was this analysis based?

• A) 19.2%
• B) 10.4%
• C) 6.3%
• D) 12.1%
• E) 9.6%

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Definitions:

Cross-Border Trade

International trade involving the exchange of goods, services, and capital across national borders.

Cross-Border Trade

The exchange of goods or services between individuals, companies, or governments from different countries.

Mexican Business Environment

The economic, cultural, and regulatory context within which businesses operate in Mexico.

Common Currency

A system where a single form of money is used across multiple countries, facilitating easier trade and financial transactions.