Which of the Following Is NOT a Precautionary Motive for Holding

question 4

Multiple Choice

Which of the following is NOT a precautionary motive for holding cash?

• A)Anticipated funds to be remitted from several Middle East countries are in question due to unrest in the region.
• B)The firm has several short-term obligations in unhedged foreign currency-denominated contracts.
• C)The firm must pay ordinary wages in two days.
• D)All are precautionary motives.

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