Big Tree generally has a reasonably high demand for cash to pay contract workers during the harvest season. For the rest of the year, Big Tree generally keeps a cash balance of RM10,000. However, during the harvest season, the daily cash balance is kept at a minimum of RM30,000. Which of the following best describes this companys motive for maintaining the additional RM20,000 during the harvest season?

Select one:

a. Precautionary motive.

b. Profit motive.

c. Transaction motive.

d. Speculative motive.