Although firms do not segregate funds for various motives of holding cash,they do consider them in setting their overall cash positions.

Question

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Firms may have various motives for holding cash, such as transactional, precautionary, speculative, or strategic. While they may not segregate funds for each of these motives, they do consider them when determining their overall cash position.

Although Firms Do Not Segregate Funds for Various Motives of Holding