The three motives for holding cash are:
A) float reduction, precautionary, and speculative.
B) buffer stock, speculative, and transactional.
C) speculative, transactional, and precautionary.
D) float reduction, buffer stock, and transactional.
E) convenience, transactional, and precautionary.

Question

Quizplus · Accepted Answer

There are three reasons for holding cash - transactional, precautionary, and speculative.

The Three Motives for Holding Cash Are