Which One of the Following Represents a Primary Advantage of Keeping

Which one of the following represents a primary advantage of keeping cash on hand based upon the speculative motive?

A) The cash saved for this purpose earns a relatively high rate of interest.
B) If a good opportunity suddenly arises the firm can move quickly to benefit from that opportunity.
C) The financial manager does not always have to scramble to borrow funds to meet the daily cash needs of the business.
D) Whenever a machine breaks the company has the funds available to replace it.
E) These funds are generally used as the compensation balance for a line of credit and thus serve a dual purpose.