Relative to the other cash management models

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Reference no: EM131300293

1. Which of the following motives for holding cash concerns managers’ ability to meet financial obligations when due?

a) Transaction motive

b) Precautionary motive

c) Speculative motive

d) Agency motive.

2. Relative to the other cash management models (i.e. Baumol Model and Miller-Orr Model), the Stone model is _______________practical.

a) More

b) Less

c) Equally

d) Insufficient information to determine.

Reference no: EM131300293

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