Examlex
Nonverbal instruments have been developed primarily in an attempt to:
Target Cash Balance
The optimal amount of cash that a company aims to hold to meet expected transactions, precautionary, and speculative needs.
Speculative Motive
The intent to hold cash or other assets for the purpose of benefiting from future market movements.
Precautionary Motive
The desire to hold cash or liquid assets to guard against unforeseen future needs and emergencies.
Transaction Motive
The need for cash to meet immediate and anticipated demands for payment, a key reason for holding cash in business.
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