The transaction motive for holding cash is for:

A safety cushion
Daily operating requirements
Compensating Balance requirements
None of the above
Daily operating requirements  

Related posts

ABC Ltd. has a Current Ratio of 1.5: 1 and Net Current Assets of Rs. 5,00,000. What are the Current Assets:
A. Rs. 5,00,000
B. Rs. 10,00,000
C. Rs. 15,00,000
D. Rs. 25,00,000
Dividend Payout Ratio is:
A. C
B. DPS Õ EPS
C. Pref. Dividend Õ PAT
D. Pref. Dividend Õ Equity Dividend
The money markets deal with:
A. Securities with a life of more than one year
B. short-term securities
C. Securities such as common stock
D. None of these
Traditional approach confines finance function only to ______ funds.
A. Raising
B. Mobilizing
C. Utilizing
D. Financing
Short ““ term interest rates, in a normal economy, are generally ___________ than long ““ term rates:
A. Higher
B. The same
C. Lower
D. None of the above
Insufficient working capital results in:
A. Block of cash
B. Loosing interests
C. Lack of production
D. Lack of smooth flow of production
Financial Management is mainly concerned with _______:
A. arrangement of funds
B. all aspects of acquiring and utilizing financial resources for firm’s activities
C. efficient Management of every business
D. profit maximization

Leave a Reply

Your email address will not be published. Required fields are marked *