Chapter 15 Assignment Back to Assignment Attempts Keep the Highest / 2 2. The motives for holding cash balances Select the best type of cash balance to complete the following sentence. cash balance is held to allow firms to take advantage of any bargain purchases that might arise. Imagine that Dallas Fabricators Inc. is a manufacturing company. Dallas's financial managers have begun running a lot of the firm's banking affairs through a larger bank. The new bank has more experience dealing with firms of Dallas's stature. The new bank charges very low fees for its services but does require that Dallas keep a minimum balance in its account What type of cash balance is this? Transactions Precautionary Compensating Speculative Grade It Now Save & Continue