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    Financial Management Theory and Practice Study Set 4
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    Exam 28: Advanced Issues in Cash Management and Inventory Control
  5. Question
    The Cash Balances of Most Firms Consist of Transactions, Compensating
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The Cash Balances of Most Firms Consist of Transactions, Compensating

Question 26

Question 26

True/False

The cash balances of most firms consist of transactions, compensating, precautionary, and speculative balances.We can produce a total desired cash balance by calculating the amount needed for each purpose and then summing them together.

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