The Demand for Money as a Cushion Against Unexpected Contingencies

question 24

Multiple Choice

The demand for money as a cushion against unexpected contingencies is called the

• A)transactions motive.
• B)precautionary motive.
• C)insurance motive.
• D)speculative motive.

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Definitions:

Performing Poorly

A term used to describe assets, investments, or businesses that are not achieving expected levels of profit or performance.

Cash Budgets

Financial plans that estimate future cash receipts and expenditures over a specific period.

Planning Purposes

The process of preparing for future operations or activities by setting objectives, developing strategies, and outlining tasks and schedules to accomplish the goals.

Costly Component

Refers to an expensive part or element required in the production of a good or in the provision of a service.