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.

---

Definitions:

Neurological Disturbances

Conditions that disrupt the normal functioning of the nervous system, leading to symptoms such as paralysis, muscle weakness, or sensory disruptions.

Folic Acid

A form of vitamin B9, essential for DNA synthesis and repair, red blood cell formation, and the development of the fetal nervous system during pregnancy.

Spina Bifida

A birth defect where there is incomplete closing of the backbone and membranes around the spinal cord.

Toxoplasmosis

A parasitic disease caused by Toxoplasma gondii, which can infect most animals and humans, often contracted from contaminated food, soil, or through contact with cat feces.