a) available instantaneously.
b) available almost instantaneously.
c) next day available.
d) available for borrowing immediately.
a) operational investments.
b) speculative investments.
c) strategic investments.
d) near-cash investments.
a) Treasury bonds
b) Commercial paper
c) Treasury bills
d) Bankers’ acceptances
a) As much as possible
b) Just enough to pay for purchases
c) Enough to be liquid
d) None
a) The motives for the use of the cash
b) The firm’s borrowing capacity
c) a and b
d) None of the above determines the optimum amount of cash a firm should hold
1.To be included in "cash on hold" cash must be:
B) available almost instantly : like cash in bank
2. Investment in short-term marketable securities are categorize as:
d) Near- cash investment: because they are highly liquid securities
3. Which of the following is not an example of near-cash item?
a) Treasury bonds : Treasury bonds are debt securities whose maturity is more than 10 years
4. What is the optimal amount of cash a firm should hold?
c) Enough to be liquid: Liquidity is important because whenever there is shortage of inventory we can convert the liquid asset into cash
5. What determines the optimum amount of cash a firm should hold?
c) Both a and b i.e. the motives for the use of cash and the firm's borrowing capacity
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