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    Holding Cash

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    What are the two principal reasons for holding cash? Can a firm estimate its target cash balance by summing the cash held to satisfy each of the two reasons?

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    https://brainmass.com/business/cash-management/holding-cash-335679

    Solution Preview

    Two of the principal reasons for holding cash are 1) transactions motive, and 2) precautionary ...

    Solution Summary

    This solution discusses the two principal reasons for holding cash and whether a firm can establish its target cash balance by summing the cash held to satisfy those reasons.

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