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    Fundamentals of Corporate Finance Study Set 12
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    Exam 19: Working Capital Management
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    The Amount of Cash a Firm Holds to Counter the Uncertainty
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The Amount of Cash a Firm Holds to Counter the Uncertainty

Question 83

Question 83

Multiple Choice

The amount of cash a firm holds to counter the uncertainty surrounding its future cash needs is known as a(n) :


A) speculative balance.
B) compensating balance.
C) operating balance.
D) precautionary balance.
E) transactions balance.

Correct Answer:

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