Which of the following pairs does not include a motive for holding cash?
A)Transactions motive and speculative motive
B)Precautionary motive and transactions motive
C)Speculative motive and finance motive
D)Transactions motive and operating motive

Question

Quizplus · Accepted Answer

The transactions motive refers to the need to hold cash to make routine purchases and payments. The precautionary motive refers to the need to hold cash as a buffer against unexpected events. The speculative motive refers to the desire to hold cash as a potential investment opportunity. The finance motive refers to the need to hold cash for investment or financing purposes. The operating motive is not a commonly recognized motive for holding cash.

Which of the Following Pairs Does Not Include a Motive