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Question 5

Which the the adhering to is not a metric to use for measure up the size of the cash cycle?


a) A discount the 5% will certainly be given for complete payment within 7 days. Failing that, the account have to be worked out in 30 days.
b) A discount the 7% will certainly be provided for complete payment in ~ 5 days. Failing that, the account need to be resolved in 30 days.
c) A discount that 30% will certainly be given for complete payment within 7 days. Failing that, the account must be settled in 30 days.
d) A discount the 5% will certainly be provided for full payment within 30 days. Failing that, the account must be worked out in 7 days.
a) The EOQ version is based upon the trade-off between average order price which increases with stimulate quantity and average storage price which declines with order quantity.
b) The EOQ design is based on the trade-off between average order cost which increases with bespeak quantity and also average storage price which boosts with bespeak quantity.
c) The EOQ version is based on the trade-off between average order cost which decreases with order quantity and also average storage price which increases with stimulate quantity.
d) The EOQ version is based upon the trade-off in between average order cost which decreases with order quantity and average storage expense which decreases with stimulate quantity.
b) Need for compensation balance: frequently a problem of the bank providing commercial loans or other financial services.

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c) Speculative motive: cash flow that have the right to be deployed conveniently in the occasion of an invest opportunity.

Question 9

Which of the complying with is the exactly formula because that the Baumol inventory model of cash management?


Question 10

Which of the following is the correct formula because that Z, the median cash holding, in the Miller-Orr design of cash management?


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