Quiz for FIN 312 - FIN MANAGEMENT II with Harris Jr at Clemson (Clemson)

Quiz Information

Material Type:Quiz 3
Professor:Harris Jr
University:Clemson University
Term:Fall 2010
  • Maturity Date
  • Liquid Assets
  • Consultation
  • Provided That
  • Commercial Paper
  • Default Risk
  • Acquisition
  • Money Market
  • Opportunity
  • Concentration
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Sample Document Text

Name Zach Seaborn SID# 635480991 GRADE _________ Grader _________________ FIN 312: RQ 17 1. What are the five reasons firms hold liquid asset balances? a. To serve as a buffer between cash inflows and outflows b. to meet unexpected requirements for cash (precautionary motive) c. held to meet future requirements d. for speculative purposes (preparation for major acquisition) e. to compensate its bank (or banks) for the services provided (compensating balances) 2. What are the six tangible services bank provide firms? a. Disbursement, wire transfer, direct deposit, and payroll checking accounts b. collection of deposits c. cash management d. lines of credit, term loans or both e. handling of dividend payments f. registration and transfer of a firm’s stock 3. What are the two intangible services that banks provide firms? a. Supplying credit information b. Providing consultation 1. What are the two types of costs associated with holding liquid assets? a. Opportunity costs b. Shortage costs 1. What are the ...

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