Firms that maintain an adequate reserve borrowing capacity will be able to _____ money at a...

Question:

Firms that maintain an adequate reserve borrowing capacity will be able to _____ money at a reasonable cost when good investment opportunities arise.

a. borrow

b. lend

Investment:

Money inserted in the market for buying services, commodities or securities, that are not utilized today but produce future profits is known as an investment. Every investment has risk associated with it, which every investor has to deal with.

Answer and Explanation:

The correct option is a. borrow

Organizations that have a sufficient reserve borrowing capacity will be able to borrow funds for the market easily and at a reasonable cost. Defining an "adequate" reserve borrowing capacity is essential depending upon the organization's expected requirement of funds and estimated condition of the capital market.


Learn more about this topic:

Loading...
What Are Money Market Funds? - Definition, Types & Examples

from Introduction to Business: Homework Help Resource

Chapter 6 / Lesson 5
21K

Related to this Question

Explore our homework questions and answers library