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Explain the motivations for holding cash

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Question: Motivations for Holding Cash. In the chapter opening, we discussed the cash positions of several companies. Automobile manufacturers also have enormous cash reserves. In the middle of 2015, Ford Motor Co. had about $31.9 billion in cash, General Motors had about $25 billion, and Toyota had about $43 billion. Why would firms such as these hold such large quantities of cash?

Reference no: EM131733225

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