Which of the following costs related to holding cash are minimized when the level of cash a firm holds is optimized?

A repurchase agreement generally has a maximum life of:    A.  1 day. B.  a few days. C.  one month. D.  one to three months. E.  three to six months. Refer to section 19.5

37.	A money market preferred stock:    A.  has a floating dividend. B.  is sold only under a repurchase agreement. C.  is a special form of commercial paper. D.  has more price volatility than an ordinary preferred. E.  has its interest rate reset daily. Refer to section 19.5

38.	Which of the following costs related to holding cash are minimized when the level of cash a firm holds is optimized?    A.  opportunity costs B.  trading costs C.  total costs D.  both trading and opportunity costs E.  trading costs, opportunity costs, and total costs Refer to section 19.A

39.

Which of the following statements related to the BAT model is correct? I. The BAT model is used to determine the target cash balance for a firm. II. The BAT model is rarely used in business due to its complex nature. III. The BAT model is a model that helps eliminate a firm's collection float. IV. One disadvantage of the BAT model is the fact that it assumes all cash outflows are known with certainty.    A.  I and II only B.  III and IV only C.  II and III only D.  I and III only E.  I and IV only Refer to section 19.A

40.

Which of the following variables are included in the BAT model? I. upper cash limit II. interest rate on marketable securities III. opportunity cost of holding cash IV. fixed cost of each securities trade    A.  II only B.  I and III only C.  II and IV only D.  II, III, and IV only E.  I, III, and IV only Refer to section 19.A