Which one of the following is a speculative motive for holding cash?
A) paying the annual insurance premium on the firm's assets
B) contributing $1000 to help fund medical care for an uninsured neighbour
C) needing to purchase a new delivery truck because the old one was totally destroyed in an accident
D) paying a $100 bonus to all employees at year end
E) buying extra inventory because a key supplier offered a special one-time discount
Correct Answer:
Verified
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