Explain the difference between the transaction motive and the precautionary motive for holding cash.
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (7 reviews)
The transaction motive for holding cash is to hold c...View the full answer
Answered By
OTIENO OBADO
I have a vast experience in teaching, mentoring and tutoring. I handle student concerns diligently and my academic background is undeniably aesthetic
4.30+
3+ Reviews
10+ Question Solved
Related Book For
Multinational Business Finance
ISBN: 978-0132743464
13th edition
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
Question Posted:
Students also viewed these Cost Accounting questions
-
Explain the difference between a holding and a judgment.
-
Explain the difference between a cash CDO and a synthetic CDO.
-
Explain the difference between a cash account and a margin account.
-
Route Canal Shipping Company has the following schedule for aging of accounts receivable: AGE OF RECEIVABLES APRIL 30, 2001 a. Fill in column (4) for each month. b. If the firm had $1,440,000 in...
-
The manager of a fish market pays 80 cents each for cod and sells them for $1.50 each. Fish left over at the end of the day are discarded. The daily demand can be approximated by a normal...
-
Why is the calculation of depreciation using MACRS generally considered easier and more efficient than the calculation using the facts and circumstances method?
-
In a \(50 \%\) reaction turbine stage running at \(50 \mathrm{rps}\), the exit angles are \(30^{\circ}\) and the inlet angles are \(50^{\circ}\). The mean diameter is \(1 \mathrm{~m}\). The steam...
-
A salad oil bottling plant can either purchase caps for the glass bottles at 5 cents each or install $500,000 worth of plastic molding equipment and manufacture the caps at the plant. The...
-
Write an essay that demonstrates your research on your technology topic and addresses the following: 1. Explanation of the technology and why it was developed. 2. Explain how the technology is being...
-
1. Complete Jack and Sarahs list for them, including the issues you think they will place on the list along with their recommendations. Which of the issues do you think will stimulate the most...
-
What are the advantages of a free trade zone? Are there any disadvantages?
-
The operating cash cycle of a multinational firm goes from cash collection from customers, cash holding for anticipated transaction needs (the transaction motive for holding cash), possible cash...
-
Give a practical example for when you believe constant returns to scale, increasing returns to scale, and decreasing returns to scale are appropriate.
-
What do networkers do to make their communication successful? How can you adopt the same strategies to improve your own communication?
-
What does it mean to say that excellent networkers are givers rather than takers?
-
In what ways does communication differ in formal and informal professional networks?
-
How are clichs, dialects, defamation, and loaded language tied to credibility?
-
With whom might we have downward communication, upward communication, and lateral communication in the workplace? What are the differences among these?
-
What is flexibility and why is it important to a modern organization?
-
Tiger, Inc. signed a lease for equipment on July 1, 2007.The lease is for 10 years (the useful life of the asset).The first of 10 equal annual payments of $500,000 was made on July 1, 2007.The...
-
Bernie Madeoff pays $240,000 for a new four bedroom 2400 square foot home outside of Tonopah, Nevada. He plans to make a 20% downpayment, but is having trouble deciding whether he wants a 15-year...
-
Botany Bay Corporation of Australia seeks to borrow US$30,000,000 in the Eurodollar market. Funding is needed for two years. Investigation leads to three possibilities. Compare the alternatives and...
-
Botany Bay Corporation of Australia seeks to borrow US$30,000,000 in the Eurodollar market. Funding is needed for two years. Investigation leads to three possibilities. Compare the alternatives and...
-
BRAND SELF COLLATERAL What is your brand name? What is your logo (YOU MUST DESIGN IT What is your brand slogan (the phrase that defines your brand and yourself) What are celebrity spokesperson is...
-
Amidst the burgeoning complexity of contemporary business landscapes, how do advanced organizations employ sophisticated design principles and ergonomic considerations to optimize physical workspaces...
-
JavaScript Assignment 1: Personal Web site This assignment is linked to your final project. Thus far, you have completed a total of 4 sections as part of the Final Project. You have created a basic...
Study smarter with the SolutionInn App