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Which of the following scenarios is an example of the speculative motive to hold cash?

tennisalex

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Which of the following scenarios is an example of the speculative motive to hold cash?

Which of the following scenarios is an example of the speculative motive to hold cash?

▸ An oil refining company holds cash to make special purchases of petroleum if the price temporarily drops below a predetermined level.

▸ A small business holds cash that it will use to purchase equipment at the end of the year.

▸ A firm holds cash to pay its employee wages.

▸ A government holds cash to make interest payments on its bonds.

Textbook

Corporate Finance

Corporate Finance

Edition: 5^th

Author: Booth

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