Firm attempts to offset the cost of holding cash

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Reference no: EM131070514

A firm attempts to offset the cost of holding cash by:

A. Optimization of Mechanisms for the Disbursement and Collection of Cash, thereby reducing the amount of cash tied up in the banking system.

B. Recovering part of the carrying cost of cash by investing temporarily idle cash in liquid investments that can be easily coverted to cash.

C. Both A and B

D. Answer A only

Reference no: EM131070514

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