14 Which of the following are needed to determine the optimal strategy using the BAT model I the amount of cash required for transactions over a period of time Il management's desired lower level of cash III, the opportunity cost of holding cash IV the fixed cost of a securities trade a Il only b I and Ill only c Il and IV only d II and IV only e L, III, and IV only Which of the following statements is false regarding float A) Checks written by a firm generate disbursement float B) Checks received by a firm create collection float C) In general, a firm's disbursement activities and its collection activities generate float D) A firm's float is negative when its available balance equals its book balance E) Firms can exploit float by using the cash needed to cover a check that has not yet 15 cleared If you write a check on your account, there is an immediate decrease in the balance, but no decrease in the payment 16 balance until the check is presented to a bank for C)clearing ledger A) collected ledger B) avalailablel ledger D) book available E) Book clearing 17 A firm has taken steps to reduce the time to process the checks received from its customers from 4 days to 2 Additionally, the firm has switched banks, as its prior bank made funds available for withdrawal 2 days after deposit, while the new bank makes deposits available after only 1 day All else the same, these steps should the firm's float C) decrease net A) increase net B) increase collection D) decrease disbursement E) not change net 18 The amount of time it takes for a check (or electronic) deposit to clear through the banking system is called A) Mail delay B) Processing delay C) Total float D) Availability delay E) Collection Float 19 A firm currently sets its initial cash balance at $25 000, which is depleted every 15 for days The current market rate of return is 6 per year The opportunity costs the firm's decision regarding its cash balance is C) $600 per year A) S425 per year D) $750 per year B) E) $500 per year S900 per year

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14  Which of the following are needed to determine the optimal strategy using the BAT model  I  the amount of cash required for transactions over a period of time Il  management's desired lower level of cash III, the opportunity cost of holding cash IV  the fixed cost of a securities trade a  Il only b  I and Ill only c  Il and IV only d  II and IV only e  L, III, and IV only Which of the following statements is false regarding float  A) Checks written by a firm generate disbursement float B) Checks received by a firm create collection float  C) In general, a firm's disbursement activities and its collection activities generate float  D) A firm's float is negative when its available balance equals its book balance E) Firms can exploit float by using the cash needed to cover a check that has not yet 15  cleared  If you write a check on your account, there is an immediate decrease in the balance, but no decrease in the payment  16  balance until the check is presented to a bank for C)clearing  ledger A) collected  ledger B) avalailablel ledger D) book  available E) Book  clearing 17  A firm has taken steps to reduce the time to process the checks received from its customers from 4 days to 2  Additionally, the firm has switched banks, as its prior bank made funds available for withdrawal 2 days after deposit, while the new bank makes deposits available after only 1 day  All else the same, these steps should the firm's float C) decrease  net A) increase  net B) increase  collection D) decrease  disbursement E) not change  net 18  The amount of time it takes for a check (or electronic) deposit to clear through the banking system is called A) Mail delay  B) Processing delay  C) Total float  D) Availability delay  E) Collection Float 19  A firm currently sets its initial cash balance at $25 000, which is depleted every 15 for days  The current market rate of return is 6  per year  The opportunity costs the firm's decision regarding its cash balance is C) $600 per year A) S425 per year D) $750 per year B) E) $500 per year S900 per year

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14. Which of the following are needed to determine the optimal strategy using the BAT model? I. the amount of cash required for transactions over

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