The need to hold cash to take advantage of additional investment opportunities is called the:

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

Speculative Motive

The intention to hold cash for the purpose of taking advantage of future opportunities that may arise, such as bargain purchases or earning profits from price changes.

Investment Opportunities

Investment opportunities refer to avenues where individuals or entities can invest their resources with the expectation of generating a future financial return.

Float Motive

The reason businesses hold onto cash for transactional purposes, allowing them to meet short-term obligations without liquidating investments.