Time remaining:
FN Reasons for holding cash

Business & Finance
Tutor: None Selected Time limit: 0 Hours

what are the two principal reasons for holding cash? Can a firm estimate its target cash balance by summing the cash held to satisfy each of the two reasons?

Apr 19th, 2015

The two principal reasons for holding cash are for "transac­tions" and for "compensating balances". No, the target cash balance is not equal to the sum of the holdings for each reason because the same money can often partially satisfy both motives.


Apr 19th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Apr 19th, 2015
...
Apr 19th, 2015
May 25th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer