Answer the following question:
Question 1: What are the primary reason a firm holds a liquid asset balance?
Question 2: Describe the cost trade-offs associated with maintaining the following.
a. Excessive liquid asset balance
b. Inadequate liquid asset balance
Question 3: Define float and describe the difference between disbursement float and deposit float.
Question 4: Describe the methods available to a firm for expediting the collection of cash.
Question 5: Describe the techniques available to a firm for slowing disbursements.
Note: Please show how to work it out.