State Whether the Following Illustrates the Speculative,precautionary or Transactions Motive

question 31

Essay

State whether the following illustrates the speculative,precautionary or transactions motive for holding money.
a.A bond broker holds cash for the possibility of buying a bond whose price is expected to rise.
b.John's mother tells him to keep $10 in his pocket any time he goes out in case he needs to put gas in the car.
c.As stock prices begin to tumble,investors sell stock and increase their cash holdings.
c.Julio withdraws $100 from the bank to buy vegetables at the local organic farm market.
d.Mary takes out $50 from the bank to buy lunches during the week.

Explain the rationale behind specific journal entries.

Comprehend the sequence and methodology of recording business transactions.

Identify and correct common posting errors and understand their effects on financial statements.

Identify the symbols and their meanings in the CPT manual.

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Definitions:

Similar Customers

Individuals or organizations with comparable needs, interests, or characteristics, targeted by businesses offering tailored products or services.

Geographic Region

An area defined by natural or artificial boundaries characterized by specific physical, economic, cultural, or political conditions.

Divisional Structure

A type of organizational structure where operations are divided into semi-autonomous units or divisions based on product, service, market, or geography.

Deleting New Products

The process of removing recently introduced goods or services from the market or production lines, often due to underperformance or strategic realignment.