Which of the Following Scenarios Is an Example of the Speculative

question 42

Multiple Choice

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

• A)An oil refining company holds cash to make special purchases of petroleum if the price temporarily drops below a predetermined level.
• B)A government holds cash to make interest payments on its bonds.
• C)A small business holds cash that it will use to purchase equipment at the end of the year.
• D)A firm holds cash to pay its employee wages.

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Definitions:

Hydro Seeder

A machine used for spraying a slurry of seeds, water, fertilizer, and mulch over a large area to promote rapid vegetation growth for landscaping and erosion control.

Stainless Steel

A corrosion-resistant alloy of iron, chromium, and often nickel, widely used in utensils, appliances, and industrial equipment.

Spray Arms

Components of dishwashers designed to spray water and detergent onto dishes to clean them effectively.

Objection Into Reason

A sales technique where objections raised by a prospective buyer are turned into reasons why they should actually purchase the product or service.