Which One of the Following Statements Is Correct Concerning a Motive

Which one of the following statements is correct concerning a motive for maintaining liquidity?

A) Firms should maintain compensating balances just in case they encounter an emergency situation.
B) Firms need to hold cash as a buffer between inflowing and outflowing transactions.
C) International firms have a transactional motive to hold cash in case favorable exchange rates become available.
D) Firms need to hold cash for precautionary motives especially since money market accounts are not very liquid.
E) The increasing use of electronic funds transfers is increasing the transactional motive to hold cash.