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Which of the following statements correctly describe the reasons why firms hold cash even though cash doesn't earn interests? Firms hold transaction cash for routine

Which of the following statements correctly describe the reasons why firms hold cash even though cash doesn't earn interests?

Firms hold transaction cash for routine payments and collections.

Firms reserve precautionary cash for random and unforeseen fluctuations in cash flows.

Firms hold cash to take advantage of bargains, discounts, etc.

All of the statements above are correct.

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