GT Motors Regularly Issues Short-Term Debt to Finance Its Daily

question 69

Multiple Choice

GT Motors regularly issues short-term debt to finance its daily operations.Suddenly,the credit markets froze and no funds were available for borrowing.Fortunately,the firm had some cash reserves saved that it was able to use to fund its operations until additional credit was available.The need to retain cash for situations such as this is referred to as which one of the following motives for holding cash?

• A)speculative
• B)float
• C)compensating
• D)precautionary
• E)transaction

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Definitions:

Misremember

The act of recalling something inaccurately or incompletely, often leading to distorted memories or misunderstandings.

Stereotype-Consistent

Behaviors or attributes that align with and reinforce widely held beliefs or oversimplified ideas about a particular group of people.

Social Learning Theory

A framework suggesting that people learn new behaviors and attitudes through observation and imitation of others, especially when the behaviors are rewarded.

Characteristic Behavior

Actions or reactions of an individual or group that are typical or expected based on their personality, culture, or social context.