The Amount of Cash a Firm Holds to Counter the Uncertainty

question 83

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.
• E)transactions balance.

---

Definitions:

Negative Feedback

A response or information that indicates a deviation from a desired or intended outcome, leading to corrective action.

Praise

The expression of approval, admiration, or commendation towards someone or something, often used as a positive reinforcement mechanism.

Criticism

The act of expressing disapproval of someone or something based on perceived faults or mistakes, or the analysis and judgment of merits and faults.

Corrective Facework

Efforts to correct what one perceives as a negative perception of oneself on the part of others.