The Transactions Motive Refers To

question 78

Multiple Choice

The transactions motive refers to:

• A)the motive to hold cash that is required for a firm's normal operations.
• B)the motive to hold cash that is required for purchases.
• C)the motive to hold cash that is required for a firm's long-term purchases.
• D)the motive to hold cash that is required for emergencies.

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Definitions:

B2B

Business-to-Business, a model in which businesses provide products or services to other businesses rather than to consumers.

B2C

B2C (Business-to-Consumer) describes the process of selling products and services directly from businesses to the end-users or consumers.

Volume

The amount of space that a substance or object occupies, or that is enclosed within a container.

Complex

Consisting of many different and connected parts, making something hard to understand, solve, or analyze.