Which of the following is true regarding the opportunity costs of holding cash and the...
70.2K
Verified Solution
Link Copied!
Question
Finance
Which of the following is true regarding the opportunity costs of holding cash and the size of the cash balance held by a firm?
Opportunity costs are minimized at the optimal cash balance.
There is no relationship between cash balances and opportunity costs.
If a firm can reduce its collection float, opportunity costs will rise and the optimal cash balance for the firm will be decreased.
The higher the cash balance, the higher the opportunity cost.
If a firm can reduce its collection float, opportunity costs will fall and the optimal cash balance for the firm will be increased.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.