Davenport FIN620 week 6 quiz

Question Question 1 Firms hold cash to satisfy the transaction motive. This means that cash is held: A. to meet disbursements for normal operations. B. to balance the flow between cash inflows and outflows. C. to make unexpected payments such as special price discounts. D. Both to meet disbursements for normal operations; and to balance the flow between cash inflows and outflows. E. None of these. 2 points Question 2 If the total long term financing of the firm is greater than the total financin...

Question Question 1 Firms hold cash to satisfy the transaction motive. This means that cash is held: A. to meet disbursements for normal operations. B. to balance the flow between cash inflows and outflows. C. to make unexpected payments such as special price discounts. D. Both to meet disbursements for normal operations; and to balance the flow between cash inflows and outflows. E. None of these. 2 points Question 2 If the total long term financing of the firm is greater than the total financin...

Question Question 1 Firms hold cash to satisfy the transaction motive. This means that cash is held: A. to meet disbursements for normal operations. B. to balance the flow between cash inflows and outflows. C. to make unexpected payments such as special price discounts. D. Both to meet disbursements for normal operations; and to balance the flow between cash inflows and outflows. E. None of these. 2 points Question 2 If the total long term financing of the firm is greater than the total financin...

Question Question 1 Firms hold cash to satisfy the transaction motive. This means that cash is held: A. to meet disbursements for normal operations. B. to balance the flow between cash inflows and outflows. C. to make unexpected payments such as special price discounts. D. Both to meet disbursements for normal operations; and to balance the flow between cash inflows and outflows. E. None of these. 2 points Question 2 If the total long term financing of the firm is greater than the total financin...