Transaction balances are used to meet the regular cash needs of the firm,not irregular outflows that will be handled with speculative balances.
Correct Answer:
Verified
Q9: The industry in which a firm operates
Q10: Effective cash management involves the trade-off between
Q11: The most important reasons firms hold cash
Q12: The funds needed to satisfy the precautionary
Q13: Firms like to hold large stocks of
Q15: Marketable securities are purchased when excess cash
Q16: The objective of managing cash inflows is
Q17: Speculative cash balances are held to take
Q18: The more difficult it is to estimate
Q19: The estimated value of reducing float by
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents