Which of the Following Scenarios Is an Example of the Transactions

question 61

Multiple Choice

Which of the following scenarios is an example of the transactions motive to hold cash?

• A)An oil company saves abnormally high earnings as cash on its balance sheet which it will use to buy another oil company.
• B)A manufacturing company holds cash to pay its suppliers for raw materials.
• C)An airline keeps a reserve of cash during the winter months in case it has to pay customers a refund because bad weather results in a cancellation of flights.
• D)A firm holds cash to pay its annual dividend.

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Definitions:

Psychological Disturbances

Disorders or disruptions of mental functioning that significantly impact an individual's thoughts, emotions, or behavior, causing distress or impairment in daily life.

Mesmerism

The method employed by Austrian physician F. A. Mesmer to treat hysterical disorders; a precursor of hypnotism.

Trephination

An ancient medical intervention in which a hole was drilled or scraped into the human skull, possibly to treat health issues related to intracranial pressure or as a ritualistic or spiritual practice.

Hypnotism

An absorbed state characterized by focused awareness and heightened openness to suggestion, commonly utilized for healing purposes.