This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What are the three motives for holding cash? What will be an ideal ... (Read 50 times)

jayhills49

  • Hero Member
  • *****
  • Posts: 559
on: Jul 10, 2018
What are the three motives for holding cash?
 
  What will be an ideal response?

Question 2

How much does Ralph need to invest today to have 150,000 in five years if he will earn 8 interest compounded quarterly on his investment? (Round to the nearest whole dollar)
 
  A) 100,946
  B) 102,041
  C) 101,351
  D) 73,171
  E) 105,453


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

isabelt_18

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jul 10, 2018
Answer to Question 1

The Transactions Motive: balances held for transaction purposes allow the firm to meet its cash needs that arise in the
ordinary course of doing business. The Precautionary Motive: precautionary balances serve as a buffer. This motive for
holding cash relates to the maintenance of balances used to satisfy possible, but as yet unknown, needs. The
Speculative Motive: cash is held for speculative purposes in order to take advantage of potential profit-making
situations. Construction firms that build private dwellings will, at times, accumulate cash in anticipation of a
significant drop in lumber costs.

Answer to Question 2

A


jayhills49

  • Member
  • Posts: 559
Reply 2 on: Jul 10, 2018
:D TYSM

ebonylittles

  • Member
  • Posts: 318
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Siberian Yupik woman holding walrus tusks Siberian Yupik woman holding walrus tusks
Chimpanzees in the Gombe National Park, Tanzania groom each other by holding an overhead branch with Chimpanzees in the Gombe National Park, Tanzania groom each other by holding an overhead branch with
Research reveals that children’s motives for engaging in sports are to have fun and gain skills ... Research reveals that children’s motives for engaging in sports are to have fun and gain skills ...
Cultures Ideal Body Types Cultures Ideal Body Types
An excisor (cutter) in Uganda holding the razor blades she is about to use to circumcise teenage ... An excisor (cutter) in Uganda holding the razor blades she is about to use to circumcise teenage ...
Effleurage to pectoral muscles using fist. Lift the arm, holding just below the wrist. Apply ... Effleurage to pectoral muscles using fist. Lift the arm, holding just below the wrist. Apply ...
Video: Plant Defense Mechanisms from Pathogens

For a complete list of videos, visit our video library