Sometimes cash balances are held to enable the firm to take advantage of bargain purchases that might arise, these funds are called:

Question

Quizplus · Accepted Answer

Speculative balances are held to take advantage of opportunities for bargain purchases or investments. This is different from cash flow balances, which are held to cover expected cash expenses and receipts, and check-clearing balances, which are held to clear checks and other transactions. Tentative balances is not a commonly used term in finance.

Sometimes Cash Balances Are Held to Enable the Firm to Take