Other Things Held Constant,if a Firm Holds Cash Balances in Excess

question 78

Multiple Choice

Other things held constant,if a firm holds cash balances in excess of their optimal level in a non-interest bearing account,this will tend to lower the firm's

• A) Operating profit margin.
• B) Total asset turnover.
• C) Return on equity.
• D) All of the above.
• E) Answers b and c above.

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Definitions:

Accommodation

In psychology, the process of adjusting one's cognitive structures to incorporate new information.

Schema

A cognitive framework or concept that helps organize and interpret information, allowing individuals to make sense of their experiences and the world around them.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development and his theory of cognitive development.

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The physical and emotional comfort that an individual receives from touching or being in close physical contact with others.