2. The motives for holding cash balances Select the best type of cash balance to complete the following sentence. A cash balance is held to allow firms to take advantage of any bargain purchases that might arise. Imagine that San Jose Fabricators Inc. is a manufacturing company. In the past, San Jose Enterprises has suffered from poor cash management. In particular, situations arose in which the firm did not have the necessary cash on hand to pay its suppliers, resulting in serious penaities for late payment. The firm was not in financlal distress; it merely hadn't managed its cash flow properly to have the required funds on hand. What type of cash balance should San Jose pay more attention to in order to avold these problems? Compensating Transactions Specutative Precautionary