All of the following are valid reasons flora business to hold cash and marketable securities except to

A company will hold cash and marketable securities to facilitate business transactions; cash is a

medium of exchange. Cash and near-cash items are also held to meet future needs, to satiety

compensating balance requirements imposed by lenders, and to provide a precautionary balance for

securely purposes. Cash is usually not held in an attempt to earn maximum returns on investment

because cash and marketable securities are not 1usually the hajjes paying investments.