Which of the following is an administrative (non-economic)reason for holding cash?
A)To pay bills for the goods and services used
B)To meet short-term obligations
C)To compensate banks for services
D)To have cash available to take advantage of unexpected opportunities

Question

Quizplus · Accepted Answer

Compensating banks for providing services such as handling transactions, maintaining accounts, and offering lines of credit is an administrative reason for holding cash, not directly related to economic transactions or opportunities.

Which of the Following Is an Administrative (Non-Economic)reason for Holding