Which of the Following Is NOT a Motivation for Holding

question 21

Multiple Choice

Which of the following is NOT a motivation for holding cash?

• A) to meet its day-to-day needs
• B) to compensate for the uncertainty associated with cash flows
• C) to satisfy bank requirements
• D) to place in short-term investments

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Definitions:

Knowledge

Facts, information, and skills acquired through experience or education; the theoretical or practical understanding of a subject.

Experience

The knowledge or mastery of an event or subject gained through involvement in or exposure to it.

Relationship

The way in which two or more people, groups, or countries interact and behave towards each other.

Sender

A person or group trying to communicate with someone else.