Reason that firms typically hold cash

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Reference no: EM132018383

1. Credit extended in connection with goods purchased for resale is called

a. commercial paper.

b. bank loans.

c. trade credit or payables.

d. commercial credit.

2. Which of the following is not a reason that firms typically hold cash?

a. to make routine transactions

b. to satisfy compensating balance requirements

c. to earn interest

d. to be able to respond to emergencies and opportunities

Reference no: EM132018383

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