Traditional reasons for holding cash DO NOT include:
A)to make transactions.
B)to pay dividends.
C)for speculative opportunities.
D)to maintain compensating balances.

Question

Quizplus · Accepted Answer

Holding cash to pay dividends is not a traditional reason for holding cash. The traditional reasons for holding cash include making transactions, maintaining compensating balances, and taking advantage of speculative opportunities.

Traditional Reasons for Holding Cash DO NOT Include