Which of the Following Is Not a Reason That Firms

question 149

Multiple Choice

Which of the following is not a reason that firms typically hold cash?

• A)To make routine transactions
• B)To satisfy compensating balance requirements
• C)To earn interest
• D)To be able to respond to emergencies and opportunities

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Definitions:

Restraint Of Trade

Actions or agreements that restrict competition or the free operation of the market, often illegal under antitrust laws.

Federal Trade Commission

A United States federal agency established to prevent unfair business practices and promote consumer protection.

Antitrust Laws

Legislation enacted to prevent monopolies and promote competition among businesses, ensuring fair market practices.

Tying Contracts

Agreements where the sale of one product (the "tying" product) is conditioned on the purchase of another product (the "tied" product).