What are opportunities for buying at a discount

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Reference no: EM13506888

A consultant recommends that a company hold funds for the following two reasons.

Reason 1: Cash needs can fluctuate substantially throughout the year.

Reason 2: Opportunities for buying at a discount may appear during the year.

The cash balances used to address the reasons given above are correctly classified as


Reason 1

Reason 2

a.

Speculative balances

Speculative balances

b.

Speculative balances

Precautionary balances

c.

Precautionary balances

Speculative balances

d.

Precautionary balances

Precautionary balances

 

Reference no: EM13506888

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