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Laurie's Ice Rink Keeps an Extra $1500 in Its Cheque

Question 21

Multiple Choice

Laurie's Ice Rink keeps an extra $1500 in its cheque account simply in case an emergency arises.Which type of motive for holding cash does this represent?


A) availability
B) speculative
C) float requirement
D) transaction
E) precautionary

Correct Answer:

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