Which of the Following Is Not a Valid Reason for Holding

question 12

Multiple Choice

Which of the following is not a valid reason for holding cash?

• A) To meet transaction requirements.
• B) To earn the highest return possible.
• C) To satisfy emergency needs for funds.
• D) To provide a compensating balance for a bank.

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Definitions:

Sanitary Landfill

A waste disposal site where trash is isolated from the environment until it is safe. It is considered the most common method of organized waste disposal.

Standard Deviation

A statistical measure of the dispersion or variability of a set of values, indicating how much the values in a data set deviate from the mean.

Capacity

The maximum level of output that a company can sustain to produce goods or services at a given time.

Demand Pattern

The trends, fluctuations, and behaviors in consumer demand over a specific period.