Cash held for precautionary demand is to take advantage of unexpected opportunities.

Name: Cash held for precautionary demand is to take advantage of unexpected opportunities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cash held for precautionary demand is kept as a safety net to cover unexpected expenses or income fluctuations, not to take advantage of opportunities. Cash held for opportunistic demand, on the other hand, is held specifically for investment opportunities.

Cash Held for Precautionary Demand Is to Take Advantage of Unexpected