Register now or log in to join your professional community.
All of the following are valid reasons for a company to hold cash and marketable securities except to a. Satisfy compensating balance requirements. b. maintain adequate cash needed for transactions. c. Meet future needs. d. Earn maximum returns on investments assets.
D is correct answer is idle cash means less investment opportunities, since idle cash can be invested in marketable securities that is less risky and has less return as well so holding cash is not the best choice.
