Question: [30 MARKS SECTION -C SHORT ANSWER QUESTIONS Answer ALL questions from this section. 1. Briefly explain three motives of holding cash by a business (6

[30 MARKS SECTION -C SHORT ANSWER QUESTIONS Answer ALL questions from this section. 1. Briefly explain three motives of holding cash by a business (6 marks) 2. By use of examples, define each of the following: a. A spot rate. b. A forward rate. (4 marks) (4 marks) 3. Identify and explain the three main types of capital market securities (9 marks) 4. Explain how uncertainty in the cash budget can be managed. (7 marks)

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