The Optimal Cash Replenishment Level Will Increase with All of the Following

question 131

Multiple Choice

The optimal cash replenishment level will increase with all of the following changes EXCEPT:

• A)the transaction cost decreases.
• B)the annual demand for cash increases.
• C)the interest rate decreases.
• D)All of these will increase the optimal cash replenishment level.

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Definitions:

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring.

Self-actualization

Fulfilling or actualizing one's innate gifts and capacities, regarded as a compelling urge or essential need existing in every person.

Potential

The inherent ability or capacity for growth, development, or future success.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation and personal growth.