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The manager of a seasonal products firm excess cash keeps holiday season, to tak

ID: 2804161 • Letter: T

Question

The manager of a seasonal products firm excess cash keeps holiday season, to take advantage of retailers looking to sell excess inventory at below cost. The manager is holding cash for.......... A. speculative motives. B. transaction motives. C. precautionary motives. D. opportunity costs. E. short time financing. The manager of a seasonal products firm excess cash keeps holiday season, to take advantage of retailers looking to sell excess inventory at below cost. The manager is holding cash for.......... A. speculative motives. B. transaction motives. C. precautionary motives. D. opportunity costs. E. short time financing. The manager of a seasonal products firm excess cash keeps holiday season, to take advantage of retailers looking to sell excess inventory at below cost. The manager is holding cash for.......... A. speculative motives. B. transaction motives. C. precautionary motives. D. opportunity costs. E. short time financing.

Explanation / Answer

The manager of seasonal products firm excess cash keeps holiday season, to take advantage of retailers looking to sell excess inventory at below cost. The manager is holding cash for speculative motives

Therefore correct answer is option A. speculative motives

Speculative motive is a method used by investors and traders to hold cash so that they can exploit better investment opportunity on some future date by taking advantage of favorable situation for their investment or trade. In the above case also, the manager wants to take advantage of holiday season therefore manager is holding cash for speculative motives.