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10. The easier a firm's access to borrowed funds the lower its precautionary balances will be in order to protect against sudden increases in interest

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10. The easier a firm's access to borrowed funds the lower its precautionary balances will be in order to protect against sudden increases in interest rates. a. True b. False 11. For some firms, holding highly liquid marketable securities is a substitute for holding cash because a marketable securities portfolio can accomplish the same objective as cash. a. True b. False

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