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Canada (161,961)
Commerce (1,696)
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3FA3-19.docx

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Department
Commerce
Course
COMMERCE 3FA3
Professor
Trevor Chamberlain
Semester
Winter

Description
Commerce 3FA3 Chapter 19 Cash and Liquidity ManagementSpeculative Motive The need to hold cash to take advantage of additional investment opportunities such as bargain purchases Precautionary motive The need to hold cash as a safety margin to act as a financial reserve Transaction motive The need to hold cash to satisfy normal disbursement and collection activities associated with a firms ongoing operations Target cash balance A firms desired cash level as determined by the tradeoff between carrying costs and shortage costs Adjustment costs The costs associated with holding too little cash Also shortage costs Float The difference between book cash and bank cash representing the net effect of cheques in the process of clearing Smart card Much like an aut
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