The two principal reasons for holding cash are for transactions and compensating balances. The target cash balance

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The two principal reasons for holding cash are for transactions and compensating balances. The target cash balance is not equal to the sum of the holdings for each reason because the same money can often partially satisfy both motives.

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Financial Management Theory And Practice

ISBN: 9780324259681

11th Edition

Authors: Eugene F Brigham, Michael C Ehrhardt

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Question Posted: Jun 07, 2024 01:03 AM

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The two principal reasons for holding cash are for transactions and compensating balances. The target cash balance

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Financial Management Theory And Practice

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