Holding cash simply as a financial reserve is referred to as the ____ motive.

1 answer:

7 0

<span>Holding cash simply as a financial reserve is referred to as the "speculative" motive.

</span>Speculative motive refers to a strategy that is utilized by financial specialists/merchants to hold money to make the best utilization of any speculation opportunity that emerges later on. Keeping all cash contributed doesn't appear to be appealing constantly. Keeping up a decent lot of liquidity in one's portfolio is one of the best needs for n investor.
For the most part, financial specialists keep a decent measure of such money with them in order to acquire higher benefits.

You might be interested in

_____ is a measure of the number of times an individual is exposed to a brand message via advertising. it is used to measure the

Reika [66]

Frequency is a measure of the number of times an individual is exposed to a brand message via advertising.

6 0

2 years ago

Imprudential, Inc., has an unfunded pension liability of $800 million that must be paid in 21 years. To assess the value of the

Sunny_sXe [5.5K]

Answer:

PV= $259.89 million

Explanation:

Giving the following information:

Future Value= $800 million

Number of periods= 21 years

Relevant discount rate= 5.5 percent

<u>To calculate the present value, we need to use the following formula:</u>

PV= FV/(1+i)^n

PV= 800/1.055^21

PV= $259.89 million

5 0

3 years ago

Why do employers prefer employees with good work ethics? A. because an employee with good work ethics will always be a team play

ivann1987 [24]

D. because an employee with good work ethics can prove to be an efficient resource overall ( because its common sense)

5 0

3 years ago

Which of the following is a characteristic of a monopolistically competitive market? I. Each firm is a price-taker. II. Firms se

dangina [55]

Answer:

The correct answer is option II and III only.

Explanation:

Monopolistic competition is a market structure where there is a large number of buyers and sellers. The sellers in this market sell differentiated products which are close substitutes.

There is a very low restriction on the entry of new firms in the market. Because of differentiated products each firm has some degree of market power. The firms face a downward-sloping demand curve. This means that the firms decide the price level.

Though the firms enjoy zero economic profits in the long run.

3 0

2 years ago

The Coase Theorem states that

choli [55]

Answer:B. if transaction costs are low, private bargaining will result in an efficient solution to the problem of externalities.

Explanation:

The coarse theorem:

If there is a conflict between parties this will lead to an effecient results irrespective of who won the right to the property as long as the transaction cost related to the price negotiation is insignificant.

7 0

3 years ago