Problem 1: Explain how rapidly expanding sales can drain the cash resources of a firm.
Problem 2: Discuss the relative volatility of short- and long-term interest rates.
Problem 3: In the management of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit?
Problem 4: Briefly explain how a corporation may use float to its advantage.
Problem 5: Under what circumstances would it be advisable to borrow money to take a cash discount?
Problem 6: Discuss the relative use of credit between large and small firms. Which group is generally in the net creditor position, and why?
Problem 7: How have new banking laws influenced competition?