The holding of cash to meet the firms day-to day commitments means that cash is being held for a:

Question

Quizplus · Accepted Answer

The transactionary motive for holding cash refers to the need to have cash on hand to meet the firm's day-to-day operational expenses, such as paying bills, salaries, and other routine expenses. This type of cash holding is done to facilitate the transactions of a firm, and it is considered a motive for holding cash. The other two motives for holding cash are precautionary motive and speculative motive, which are not relevant to this scenario.

The Holding of Cash to Meet the Firms Day-To Day