9. Terminator, Inc. keeps excess cash on hand in case of an industrial accident in the manufacturing of its wheat herbicide. This is an example of a holding cash. A) speculative need B) transactions need C) deterministic need D) compensating need E) precautionary need for 10.A firm finds that its customer base is growing in geographical terms and needs to reduce its collection float by obtaining checks from receiving locations near the customers, rather than having them send their checks directly to the firm's main office. This setup is called (a): A) Lockbox arrangement. B) Wire transfer arrangement. C) Cash concentration. D) Overnight mail. E) Compensating balance. 11. The cash found in a cash drawer that a check-out clerk uses to make change is an example of which of the following motives for holding cash? A. speculative B. daily float C. compensating balance D. precautionary E. transaction I. billing electronically as a means of requiring payment five days sooner II. requiring payment at the time of sale III. requiring customers to pay electronically IV. reducing the processing delay by one day a. I and II only d. II, III, and IV only 12. Which of the following will reduce collection time? b. I and III only c. I. II, and III only e. I. II. III, and IV 13. The target cash balance can be defined as the point where the: a. opportunity costs of holding cash are equal to zero. b. opportunity costs of holding cash are maximized. c. opportunity costs of holding cash are equal to the trading (shortage) costs. d. trading (shortage) costs are equal to zero. e. trading (shortage) costs are maximized