The need to hold cash to satisfy the ongoing disbursement and collection activities of the firm as part of its daily operations is called the:

A) Speculative motive.
B) Precautionary motive.
C) Transaction motive.
D) Float motive.
E) Compensating balances motive.

Question

Zybrea Knight · Accepted Answer

Final Answer : C, Explanation :  The transaction motive refers to the need for a firm to hold cash to manage everyday transactions related to its business operations, such as paying suppliers or employees and receiving payments from customers.

The need to hold cash to satisfy the ongoing disbursement and collection activities of the firm as part of its daily operations is called the:

A) Speculative motive.
B) Precautionary motive.
C) Transaction motive.
D) Float motive.
E) Compensating balances motive.

Definitions

Learning Objectives

Learning Objectives

Related questions

The need to hold cash to satisfy the ongoing disbursement and collection activities of the firm as part of its daily operations is called the:A) Speculative motive.B) Precautionary motive.C) Transaction motive.D) Float motive.E) Compensating balances motive.

Definitions

Learning Objectives

Learning Objectives

Related questions

The need to hold cash to satisfy the ongoing disbursement and collection activities of the firm as part of its daily operations is called the:

A) Speculative motive.
B) Precautionary motive.
C) Transaction motive.
D) Float motive.
E) Compensating balances motive.