Financial Slack Is a Term Used by Economists to Identify

Financial slack is a term used by economists to identify the funds available from cash and near-cash holdings, as well as the ability to borrow readily to meet day-to-day obligations and to take
Advantage of unexpected opportunities. As such, the maintenance of financial slack represents a
Combination of the ____________ and ____________ motives for holding cash [Keynes].

A) speculative; investment
B) transactions; precautionary
C) precautionary; speculative
D) investment; precautionary
E) transactions; speculative