Cyclical Deficits ________, and Large Structural Deficits ________

question 119

Multiple Choice

Cyclical deficits ________, and large structural deficits ________.

• A) are usually temporary and do not pose long-run problems; can have negative long-run consequences
• B) are usually permanent and often pose long-run problems; can have negative long-run consequences
• C) usually have negative long-run consequences; are usually temporary and do not pose long-run problems
• D) usually have negative long-run consequences; are usually temporary but often pose long-run problems

Identify the reasons for holding cash and the concept of precautionary demand for cash.

Understand how lockbox systems and float management can improve a firm’s cash management.

Recognize the trade-offs involved in carrying either too much or too little cash.

Grasp the financial implications of different short-term financing options and cash management practices.

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Definitions:

Compliance

Adhering to laws, regulations, standards, and ethical practices applicable to business operations and activities.

Request for Quotation

A document that invites suppliers to bid on providing a product or service with specified requirements.

Brand or Equal

Specification term indicating that a product of a specific brand name or one of equal quality or performance can be supplied.

Equality

The state or condition of being equal, especially in status, rights, or opportunities, promoting fairness and non-discrimination.