For Most Firms, the Primary Motive for Holding Cash Is

question 129

True/False

For most firms, the primary motive for holding cash is the transaction motive.

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Definitions:

Contract

A legally binding agreement between two or more parties that outlines rights and duties and is enforceable by law.

Identified

Singled out or recognized from among others.

Existing

Currently present or in existence.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid over a specified period.