Firms Would Need to Hold Zero Cash When Transactions Related

question 10

Multiple Choice

Firms would need to hold zero cash when transactions related needs are:

• A)greater than cash inflows.
• B)less than cash inflows.
• C)not perfectly synchronized with cash inflows.
• D)perfectly synchronized with cash inflows.
• E)None of the above.

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Definitions:

Argument

A set of statements intended to establish a position or point of view, typically consisting of premises and a conclusion.

Explanandum

The proposition whose truth one is attempting to explain.

Diagram

A visual representation designed to illustrate the relationships between different elements of a system or process.

Premises

Statements or propositions from which a conclusion is drawn in an argument; the grounding or basis of the argument.