Question
Which of the following is correct? Select one: a. The flexible short-term financial policy increases shortage costs. b. A precautionary motive to hold cash is
Which of the following is correct?
Select one:
a.
The flexible short-term financial policy increases shortage costs.
b.
A precautionary motive to hold cash is to satisfy the compensating balance requirements to compensate for banking services the firm receives.
c.
The flexible short-term financial policy provides lower working capital/liquidity.
d.
The treasurer is responsible for identifying the optimal level of current assets that will reduce relevant costs.
e.
The transaction motive to hold cash is the need to hold cash to take advantage of additional investment opportunities.
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