The Amount of Cash a Firm Holds to Counter the Uncertainty

question 9

Multiple Choice

The amount of cash a firm holds to counter the uncertainty surrounding its future cash needs is known as a(n) :

• A)speculative balance.
• B)compensating balance.
• C)operating balance.
• D)precautionary balance.

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Definitions:

Sixteenth Century

The period from 1501 to 1600 in the Gregorian calendar, marked by significant events such as the Renaissance and the Age of Discovery.

Anecdotes

Short, often amusing or interesting stories about real incidents or people.

Experiments

Controlled procedures carried out to investigate the effects of a variable by systematically manipulating it and observing the outcome.

Phrenologists

Practitioners of phrenology, a now-discredited theory that linked the shape of an individual's skull with their personality traits and mental abilities.