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  3. the transaction motive to hold cash is best define

The transaction motive to hold cash is best defined as: Multiple Choice The need to...

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Accounting

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The transaction motive to hold cash is best defined as: Multiple Choice The need to hold cash as a safety margin to act as a financial reserve. thing O The need to hold cash to satisfy normal disbursement and collection activities associated with a firm's ongoing operations The need to hold cash to take advantage of additional investment opportunities, such as bargain purchases The need to hold cash to satisfy stakeholder requirements The need to hold cash to satisfy governmental requirements Regarding the size of a company's cash balance and the opportunity costs of holding cash, which of the following is true? Multiple Choice O If a firm can reduce its collection float, opportunity costs will fall and the optimal cash balance for the firm will be increased. If a firm can reduce its collection float, opportunity costs will rise and the optimal cash balance for the firm will be decreased. Opportunity costs are minimized at the optimal cash balance. There is no relationship between cash balances and opportunity costs. The higher the cash balance, the higher the opportunity cost

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