A firm's target cash balance should be set as the smaller of (1 ) its transaction balance plus a precautionary (safety stock) balance or (2 ) its required compensating balance

Indicate whether the statement is true or false


False

Business

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Green bank has transaction accounts worth $200 million. If the required reserve ratio is 10%, Green bank holds _____ as required reserves.

A. $220 million B. $180 million C. $60 million D. $20 million

Business

Analysis of covariance is most useful when the covariate is not linearly related to the dependent variable and is not related to the factors

Indicate whether the statement is true or false

Business

Congress passed a law imposing penalties for displaying "indecent" material online where children could see it. If the U.S. Supreme Court subsequently rules that the statute conflicts with the First Amendment of the U.S. Constitution, the statute is void

a. True b. False Indicate whether the statement is true or false

Business

According to small business experts, while raising start-up funds from friends and relatives, it is:

A. acceptable to not repay them. B. essential to involve them in company dealings. C. acceptable to not document the financing. D. essential to keep the relationship as professional as possible.

Business