What Is a Transactions Balance

question 8

Multiple Choice

What is a transactions balance?

• A) the cash a firm holds to counter the uncertainty surrounding its future cash needs
• B) the cash a firm places into short-term investments
• C) the cash a firm holds in order to pay its bills
• D) the cash a firm holds to gain tax advantages

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Definitions:

Annual Deposits

Regular sums of money placed into an account or investment over the course of a year.

Retirement Planning

The process of determining retirement income goals and the actions and decisions necessary to achieve those goals.

Withdraw

To remove funds from a bank account or to take back an offer or statement.

Annual Annuity

A fixed sum of money paid to someone each year, typically for the rest of their life or for a specified period.