Firms hold cash to satisfy the transaction motive this, Ask an Expert

Finance

Firms hold cash to satisfy the transaction motive. This means that cash is held:

A. to meet disbursements for normal operations.

B. to balance the flow between cash inflows and outflows.

C. to make unexpected payments such as special price discounts.

D. Both to meet disbursements for normal operations; and to balance the flow between cash inflows and outflows.

E. None of these.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91797146

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